Chinese investors who agreed to provide millions of dollars in funding for a series of North Texas land development deals are moving to put the projects in bankruptcy.
The forced bankruptcy attempts involve suburban land developments in several locations.
The developers of the projects say the Chapter 7 filings have no merit and are part of long-running legal disputes.
The development projects — including WALL017 LLC, WALL012 LLC, WALL016 LLC, WALL009 LLC, WALL010 LLC and WALL011 LLC — were launched by companies organized by Dallas-based JMJ Development.
Chinese investors agreed to provide millions of dollars in funding for the hundreds of acres in Kaufman, Tarrant, Johnson and Parker counties.
The investment groups claim in their filings with the United States Bankruptcy Court Northern District of Texas that they are seeking the Chapter 7 because “one or more interest payments came due under the loan agreement and remain unpaid.”
The Chinese investors also acknowledge in the court filings that the loans were never fully funded.
A representative for JMJ Development CEO Tim Barton said there has been a dispute about how the loan payments would be made.
“My client, Timothy L. Barton on behalf of the Wall entities, has made ‘best efforts’ to achieve a speedy resolution with the Chinese lenders, though talks recently stalled,” spokesperson Melanie A. Bonvicino said in an email.
Bonvicino said the dispute involves representatives of the individual investors who put up anywhere from $5,000 to more than $160,000 each.
She said Barton “intends to continue to focus his vast legal resources on defending the Wall entities.”