Plans for a 254-unit student apartment community on Center Street near the University of Texas at Arlington are in limbo after the lawyer for the Irving-based developer canceled a bankruptcy court hearing on a plan to move the project forward.
MMJV Sapphire L.P., a partnership of Maxum + Mint, filed for Chapter 11 reorganization in July, saying it was more than $9.3 million in debt. The filing stopped a July 1 foreclosure on the property by lender Arcus Private Capital Solutions in Arizona. Arcus says it is owed $7.3 million.
MMJV Sapphire later filed a proposal to pay creditors with funding from Chase Capital Advisors and emerge from bankruptcy. But the hearing to confirm that plan, scheduled for Tuesday, was not held. The court docket said another hearing is to be scheduled.
MMJV’s lawyers did not return a phone call or respond to an email requesting comment. Jay Matthiesen, one of the developers, also could not be reached.
Last month, the bankruptcy judge gave Arcus permission to repost the property for the Nov. 4 foreclosure auction in Tarrant County if MMJV had not cured its debt by Oct. 13. Arcus posted the property, but the filing does not require the auction to take place.
The community was planned between Center and Mesquite streets and Mitchell and Hosack streets on the southeast edge of UT Arlington. MMJV was still under contract to buy some of the property needed for the project.