Castle Arch Real Estate Investment Company, LLC
Case #11-35082 JTM (Lead Case)

Affiliated Entities

Case #11-32237 - CAOP Managers, LLC
Case #11-35240 - Castle Arch Opportunity Partners I, LLC
Case #11-35241 - Castle Arch Opportunity Partners II, LLC
Case #11-35242 - Castle Arch Kingman, LLC
Case #11-35246 - Castle Arch Smyrna, LLC
Case #11-35243 - Castle Arch Secured Development Fund, LLC
(Jointly Administered)


Background

Castle Arch Real Estate Investment Company, LLC ("CAREIC") was organized in approximately 2004 as a California limited liability company. According to prior management, the business model of CAREIC involved the identification, purchase, and entitlement of raw land that would then be utilized for future development. CAREIC raised money from investors pursuant to multiple securities offerings made through private placements.

CAREIC also directly or indirectly managed numerous limited liability companies, some of which held raw land in the development phase, and some of which were involved in distressed real estate projects. These limited liability companies (the "Affiliates"), like CAREIC, raised funds from investors pursuant to securities offerings made through private placements.

CAREIC and its Affiliates raised over $70 million from investors through the various securities offerings.

By stipulated order entered by the Second Judicial District Court, Davis County, State of Utah on July 12, 2012, Trent J. Waddoups was appointed as a receiver for CAREIC and certain of the Affiliates (the "Receiver"). The Receiver was authorized to, among other things, take control of these companies, including custody and control of their respective assets.

Approximately 3 months later, on October 17, 2011, the Receiver caused CAREIC to file a petition seeking relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Utah (the "Bankruptcy Court"). Chapter 11 petitions also were filed in the Bankruptcy Court for the following CAREIC Affiliates on October 20, 2011: Castle Arch Mangers, LLC; Castle Arch Opportunity Partners I, LLC; Castle Arch Opportunity Partners II; LLC; Castle Arch Kingman, LLC; Castle Arch Smyrna, LLC; and Castle Arch Secured Development Fund, LLC (the "Debtor Affiliates"). The Chapter 11 cases of CAREIC and the Debtor Affiliates are being jointly administered by the Bankruptcy Court.

On January 26, 2012, the U.S. Trustee appointed an Official Committee of Unsecured Creditors (the "Creditors’ Committee") in CAREIC’s Chapter 11 case. Based on its investigation, the Creditors’ Committee filed a motion to appoint a Chapter 11 Trustee or to convert CAREIC’s Chapter 11 case to Chapter 7 of the Bankruptcy Code. After an evidentiary hearing (transcripts of the hearing can be viewed on this website on the Other Information page), the Bankruptcy Court appointed a Chapter 11 Trustee for CAREIC.

On May 3, 2012, D. Ray Strong was appointed as the Chapter 11 Trustee for CAREIC (the "Trustee"). Since the Trustee’s appointment, he has been, among other things, managing the limited business operations, conducting a preliminary investigation to gain an understanding of the numerous and complex case issues to be addressed, developing a cash management plan to allow the continuance of the Debtors' operations, resolving insurance issues, conducting a preliminary review and analysis of the Debtors' assets and claims, meeting with existing and former personnel and interested parties, addressing tax related issues, and managing and administering the various estates.

The Trustee will be preparing periodic status reports to the Bankruptcy Court, which will be included in this website under the Trustee Reports page.

The information contained on this page is provided for informational purposes only. This page does not purport to include all Trustee-related information relating to the Castle Arch bankruptcy cases which may affect your legal rights. The information on this page is subject to change without notice, and the accuracy of the information is not guaranteed. You are not justified in relying on any of the information provided on this page. You should immediately consult competent professionals (a) to determine your rights and obligations, (b) to identify hearings and deadlines that may affect your rights or obligations, (c) to independently verify all dates and deadlines that may affect your rights and obligations, and (d) to protect your rights and to preserve your rights in the Castle Arch bankruptcy cases.

Last Updated 7/13/2017 11:44:47 AM