Bankrupt Opus West Files Suit Against Parent Company
Bankrupt and owing more than a billion dollars to creditors, the Phoenix-based real estate services firm Opus West Corp. is suing its parent company for $163 million.
February 3, 2010
By Allison Landa, News Editor
Bankrupt and owing more than a billion dollars to creditors, the Phoenix-based real estate services firm Opus West Corp. is suing its parent company for $163 million.
The suit, which was filed last week in the U.S. District Court in Dallas against Opus Corp., alleges that Opus Corp. improperly siphoned funds from Opus West. Moreover, the suit claims that the parent company exercised inappropriate dominance over its regional unit.
Opus West filed for Chapter 11 bankruptcy in July 2009, saying it had approximately $1.46 billion in liabilities but slightly less than $1.3 billion in assets. Subsidiaries O.W. Commercial Inc., Opus West LP, Opus West Partners Inc., and Opus West Construction Corp. have also filed for Chapter 11.
Two other regional firms have filed for bankruptcy: Opus East in Washington, D.C.., and Opus South in Atlanta. Opus Corp. itself is currently in the process of shutting down.
Opus Corp. did not respond Wednesday to a request for comment from CPE.
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