Housing developer’s investors ask federal court to step in [Norfolk Virginia]
A half-dozen investors in CM Development have asked a federal court to force the company and its president into bankruptcy in an attempt to recoup some of the millions they’ve spent on properties across Hampton Roads.
If successful, the investors’ move could spell the end of a company dogged by mortgage lenders, city code officials and creditors.
It also could return hundreds of homes owned by the Virginia Beach-based company and its investors to the open market, where city officials say they hope the houses eventually will be renovated and occupied.
Attorneys representing the investors who filed the involuntary bankruptcy petition Friday said they had no choice.