Earlier this week, another real estate giant fell. Grubb & Ellis Company has filed Chapter 11 bankruptcy protection as part of a deal to sell the majority of its assets to BGC Partners Inc.
According to the Associated Press, Michael Rispoli, CFO of Grubb & Ellis outlined the circumstances that led the company to seek shelter from creditors. He noted in the bankruptcy documents that the company’s losses were largely related to the meltdown of the financial markets, the slower-than-projected recovery of the real estate market, and its merger with NNN Realty Advisors Inc. Rispoli noted, “The combined effect of these adverse economic conditions and liabilities and losses associated with disposed businesses severely strained Grubb & Ellis’ liquidity and hampered its ability to continue…”
Bankruptcy filings indicate, with more than 5,000 creditors, Grubb & Ellis Co. has $150 million in assets and $167 million in debt as of the end of 2011.
