As announced last week, Opus West Corporation and some of its subsidiaries filed voluntary petitions today for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to facilitate an ongoing financial restructuring.

John Greer, chief restructuring officer of Opus West, said the bankruptcy filings were made necessary due to steep and pervasive declines in commercial real estate values and persistently difficult credit market conditions. “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 Greer. He said Opus West will maintain a modest presence in Phoenix, Texas and California 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. “Opus West faced particularly dramatic drops in real estate values in markets such as California and Arizona, and has been particularly challenged by the sharp downturn in the capital markets and availability of refinancing,” said Rauenhorst. In addition, Rauenhorst noted that the other two independent operating companies of the Opus Group, Opus North Corporation and Opus Northwest, L.L.C., have been less affected by the current economic and capital market conditions due to their mix of project types with healthy balance sheets and stronger markets. Both Opus North and Opus Northwest are actively pursuing and completing substantial development and construction projects.

Opus West Corporation is a full-service design-build development firm with expertise in office, industrial, retail, multifamily, government and institutional projects.  Headquartered in Phoenix, Opus West Corporation is one of five independent operating companies that make up the Opus Group. Opus West has developed more than 52.7 million square feet of space since starting operations in 1979.