The developer of Salpare Bay condominiums on Hayden Island has filed Chapter 11 bankruptcy, the day before the unbuilt project was to be auctioned off.
Salpare Bay, LLC owner Michael DeFrees holds an 85 percent stake in the failed project.
Construction on the Salpare Bay condominiums stalled in 2007 when the general contractor, J.E. Dunn Northwest, quit the project after not being paid for four months of work. The auction was intended to satisfy a $4.4 million dollar judgment stemming from the lost wages. But the bankruptcy filing will stall the auction while Salpare Bay LLC negotiates with its creditors.
According to the bankruptcy filing, Salpare Bay LLC has between 50 and 99 creditors. The firms three biggest debts include $510,109 owed to Stoel Rives for attorney fees, $85,000 owed to Campbell Crane of Portland in trade debt and $61,854 owed to the Bellevue, Wash.-based Team Builders JLC for trade debt.
Read more at the Daily Journal of Commerce.