Raleigh Developer Files For Chapter 11 Bankruptcy

As reported by the Triangle Business Journal

Raleigh developer who led a group of investors in bankrolling a waterfront residential project in tony Georgetown, S.C., has turned to bankruptcy court for protection as creditors line up seeking more than $10.9 million.

Kyle Corkum, president of L Star Management, formerly known as Landquest Development of Raleigh, has filed Chapter 11 bankruptcy for South Bay Properties LLC, through which the investors bought 78 acres of property. South Bay sold 54 of the project’s home lots, but the roads and infrastructure have not been put in.

Besides the lot owners, creditors include architects, engineers and even Georgetown County Councilman Ron Charlton, who sold South Bay the 78 acres and financed the land sale. Against the $10.9 million in debts, the unsold property – the entity’s only asset – is valued at $6 million, according to bankruptcy court documents.

If you have a bankruptcy question, call the bankruptcy attorneys at Hendren and Malone.

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