December 4, 2009 in Business

Five Mile auction cancelled after bankruptcy filing

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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.

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