Arin Co., a Netherlands Antilles company in the process of converting the 400-unit Lafayette Park apartments in Falls Church into condominiums, filed for reorganization under Chapter 11 of the federal bankruptcy laws late last week.
In a petition to the federal bankruptcy court in Alexandria, the company filed a preliminary listing of 59 creditors with outstanding claims totaling more than $16 million. Dominion Federal Savings & Loan Association of McLean, the mortgage holder, was the largest secured creditor listed with a disputed claim of $11.2 million.
Another major creditor was United Virginia Bank of Alexandria, with a claim of $1.9 million. Numerous offshore corporations also had claims, as did Fairfax County, with claims totaling $103,337.
Chapter 11 of the bankruptcy code is designed specifically to give a company protection from its creditors while it seeks to reorganize.
Arin Co. purchased the apartment complex in 1980 for conversion into condominiums, and reportedly ran into the same economy-related problems that numerous other condo conversion projects have suffered.
The property, located on Leesburg Pike, consists of eight buildings, each with 50 units. About 100 of the units have already been converted and roughly 50 were sold. Prices for the units range from $47,700 to $85,600. Two additional buildings were gutted in preparation for the condo conversion, and 200 units are still being rented.