COLUMBIA, SC — Columbia developer Alan Kahn and two of his real estate companies have filed for bankruptcy protection in an attempt to pay creditors and reorganize as sustainable and profitable operating entities, he confirmed Tuesday.
Kahn who has developed numerous shopping centers throughout the Southeast, including the sprawling Village at Sandhill on Clemson Road in Northeast Richland said in a statement only his Kahn Family LLC and Kahn Properties South LLC businesses are affected.
Kahn, a community philanthropist who spearheaded fundraising efforts 15 years ago to build a new Jewish Community Center on Rabon Road, said the bankruptcy stems from a dip in property values over the past two years.
It was not clear Tuesday what properties are controlled by Kahns two corporations that filed for bankruptcy protection.
Kahn Properties South is described on Kahn Development Co.s website as a regional office based in Fort Lauderdale, Fla. No information about Kahn Family was on the site.
The Village at Sandhill is controlled by Kahn Development Co., which is not included in the court filing. M.B. Kahn Construction Co. established in 1932 by his Russian-immigrant grandfather is not affected and remains a totally separate financially strong company, he said.
Kahn, 72, said he has been working with 10 creditors to satisfy debts. One of them chose to take legal action to force a court to give over to them assets placing them in front of the other creditors.
That would be unfair to the other creditors and would interfere with his attempts to work out the payment issues in good faith, he said in the statement.
Kahn said he and the businesses have reluctantly filed for a court supervised reorganization to protect all creditors equally and appropriately.
Kahn filed for protection under chapter 11 of the bankruptcy code on Monday, according to documents. The Associated Press first reported the filing.
The filing included a range of debtors under 50, assets from $1 million to $10 million and liabilities from $50 million and $100 million.
Efforts Tuesday to reach the attorney listed in the filing, Geoffrey Levy, were unsuccessful.
In 2010, Kahn failed to pay county property taxes for parts of his Village at Sandhill on time blaming businesses that were slow to pay rent during the recession. Those taxes were paid in August that year, nearly seven months late.
Staff writer Andrew Shain contributed.