National Realty Investment Advisors has declared bankruptcy in an attempt to avoid crumbling under the weight of its debt, investors asking for their money back, and multiple federal and state investigations.
Brian Casey, founder of real estate financial advisory firm The Casey Group, filed for Chapter 11 bankruptcy protection on behalf of NRIA in the U.S. Bankruptcy Court for the District of New Jersey, the company’s home state, on Tuesday. Casey has been in charge of nearly every aspect of the company’s operations since October, he said in the filing.
In addition to about $250M of property-backed debt, Casey estimates NRIA owes vendors and other creditors approximately $10M.
That number may be contested in court, however, as Philadelphia-based contractor and project management firm U.S. Construction sued NRIA in March for breach of contract and asked for nearly $30M in damages over a stalled project in South Philadelphia. That lawsuit is “dead in the water,” as U.S. Construction has joined a pool of various creditors and claimants that will await the outcome of bankruptcy proceedings, Hankin Sandman Palladino Weintrob & Bell partner John…
