December 4, 2009 in Business

Five Mile auction cancelled after bankruptcy filing

The Spokesman-Review
 

A planned auction of 33 lots in the Five Mile area of North Spokane was cancelled Friday when the developer, MT 5 LLC, filed for bankruptcy protection.

MT 5’s manager was Thomas Masters, a former vice president at Metropolitan Mortgage & Securities Co. He helped raise about $2 million to develop 42 lots in the Rocky Ridge subdivision, between Indian Trails and the Five Mile area.

By the end of 2008, however, MT 5 had sold only a handful of lots. A group of creditors filed foreclosure liens against the subdivision in mid-2009, and MT 5 filed for receivership soon after.

In October, one major creditor, D&J Rocky Ridge LLC, gained court approval to hold the auction to raise an estimated $1.5 million owed to it, said attorney Frank Gebhard.

The bankruptcy filing listed MT 5’s assets as less than $50,000.

Masters earlier this year filed a personal bankruptcy petition, listing debts of more than $26 million. He no longer lives in Spokane.

Get stories like this in a free daily email


Please keep it civil. Don't post comments that are obscene, defamatory, threatening, off-topic, an infringement of copyright or an invasion of privacy. Read our forum standards and community guidelines.

You must be logged in to post comments. Please log in here or click the comment box below for options.

comments powered by Disqus