Opus South Corporation announced today that it and some of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to facilitate an ongoing financial restructuring.

Anne Marie Solberg, chief restructuring officer of Opus South, said the bankruptcy filings were made necessary by the continued deterioration in economic conditions in the commercial and residential real estate markets in the Southeast. “While we began slowing the pace of new development nearly two years ago in anticipation of difficult market conditions, we must now take additional measures to enable an orderly wind down of our portfolio, protect asset values and maximize returns on lenders’ investments,” said Solberg. She said Opus South will currently maintain operations in Atlanta and Tampa to work on asset dispositions and transitions.

 

Mark Rauenhorst, chairman and chief executive officer of Opus Corporation, said while the challenges in the industry are as difficult as the company has ever experienced in its 56 years in the business, conditions vary considerably by region. “The Opus South portfolio includes a large number of condominium projects located in Florida, and has been particularly challenged by the sharp downturn in that portion of the regional real estate market,” said Rauenhorst. Mark Rauenhorst emphasized that only Opus South Corporation and some of its subsidiaries are included in the bankruptcy filing announced today.

 

Opus South Corporation is a full-service design-build development firm serving the southeastern portion of the United States. Headquartered in Atlanta, Opus South Corporation is one of five independent operating companies that make up the Opus Group. With in-house expertise in office, industrial, retail, multifamily, government and institutional projects, Opus South has developed more than 27.3 million square feet of space since starting operations in 1981.