Bismarck Tribune - Bismarck News - Pinehurst owner files bankruptcy

Pinehurst owner files bankruptcy

Nov 20, 2008 - 04:06:12 CST

By CRYSTAL R. REID
Bismarck Tribune

The company that owns Pinehurst Square Shopping center is filing for bankruptcy protection.

DBSI Inc., the national real estate firm and parent company to DDRS, which purchased Pinehurst in March of this year, filed for voluntary Chapter 11 bankruptcy Nov. 10 in Delaware, and is working through the courts, a news release said.

The release said the company's businesses have been severely impacted by the recent turmoil in the real estate, financial and credit markets, as well as legal action recently taken against it claiming investment and bank fraud.

"As a result of these circumstances, DBSIdetermined that it had no alternative but to commence a voluntary Chapter 11 proceeding in order to implement its plan for orderly restructuring to maximize value for all parties-in-interest, and to immediately stay the efforts of parties desiring to pursue their own individual interests,"the company said in a news release.

The local management company for the shopping center, Duemelands Commercial Real Estate, said it is conducting business as usual.

DBSI, based in Idaho, purchased the 52-acre Pinehurst property from Woodmont Management Co. for an undisclosed amount of money; the properties were last valued at $19.6 million, excluding Lowe's and Kohl's, which own their own buildings.

JimColes, a local attorney who specializes in business law, said the DBSIwill most likely restructure and continue doing business.

He added that all leases must still be honored, and the property it owns in Bismarck is likely a small part of the overall picture.

The company has several affiliates, subsidiaries and properties across the United States. Coles said its next step is to formulate a plan for restructuring its assets and debts, stating what they intend to do with the varying interests.

"What the plan will do will be to explain how to basically pay those debts under the terms of the plan and go ahead with business,"he said.

(Reach reporter Crystal R. Reid at 250-8261 or at crystal.reid@bismarcktribune.com.)

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Comments

The Big D wrote on Nov 20, 2008 7:21 PM:

" Like Obama is going to help the big bad oil industry even in ND. Remember Obama wants you to share your pie with people who don't work for a living. "

Pie Eater wrote on Nov 20, 2008 12:30 PM:

" I reiterate fom another posting, "Drill, drill, drill... the wallets of the new ND millionaires lucky enough to get a slice of the pie." I want my share. Inauguration will not get here soon enough. Hear my cry, Mr. Obama! "

wrote on Nov 20, 2008 12:29 PM:

" Just a taste of what's to come!!
Unless all the new millionaires in ND are forced to "share the wealth"!!!! "

Get In The Soup Line wrote on Nov 20, 2008 11:46 AM:

" This is just the tip of the iceberg for malls, large and small, filing for Chapter 11. We are getting into a deeper depression and many more malls will either be forced to close for a lack of business or either file Chapter 7 and/or 11 bankruptcy. North Dakota is not immune to the calamity of a deep depression roaring ahead. Can you say a loaf of bread for 30 cents, soup lines, and massive unemployment in this country. Hang on, its going to be one heck of a ride! "

wow wrote on Nov 20, 2008 11:33 AM:

" PO3- what about me. I hope they bail me out to. I own over 10 grand in credit cards. "

PO3 wrote on Nov 20, 2008 10:00 AM:

" We need to bail them out and immediately. Where have I heard that before? Oh well since insanity is what propels this nation I say why not bail them out to? "

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