Meruelo Maddux Says It May File For Bankruptcy

LOS ANGELES (AP) — Southern California real estate developer Meruelo Maddux Properties Inc. says it has been unable to service much of its debt and may have to file for bankruptcy.

The Los Angeles-based company says in a statement issued Wednesday that it has stopped making payments on loans totaling $266 million.

The company says it is seeking workout agreements with some lenders and has reduced expenses by suspending projects and reducing staff.

The developer says it is trying to sell some projects, but is finding few buyers in the current economic environment. It says its options include a voluntary Chapter 11 bankruptcy filing.

Meruelo Maddux owns, redevelops and develops property in downtown Los Angeles and other California urban markets. It is one of downtown Los Angeles' largest landlords.