While the nightmare on Wall Street unfortunately continues, there is a now a small twist added to the Mortgages Limited Securities (MLS) Bankruptcy case. This small twist could have a ripple effect and end up turning this case into a very lengthy process, ultimately hurting the naked Centerpoint Towers.
U.S. Bankruptcy Judge Randolph Haines, who requested to have an emergency hearing several months ago and has been handling the case ever since granted a motion on Wednesday that gives the opportunity to a small group of 50 investors to form a committee to represent their specific Value-to-Loan fund with Mortgages Limited Securities. County records show there were nearly 3,000 investors who provided around $1 billion for real estate development loans. Coles convinced these people to invest in a variety of loans, including the Value-to-Loan fund, which was formed this year to lend money to separate “opportunity fund.” Details on the inner workings of Mortgages Limited Securities are currently being investigated by the Securities and Exchange Commission.
The court set a date of October 7th, which is the deadline for filing a claim that outlines how much money they believe MLS owes them. Another date was set by the court, October 22, which is when Mortgages Limited Securities will submit a draft of its reorganization plan.
