SALT LAKE CITY — Triad America Corp., Saudi Arabian financier Adnan Khashoggi's investment holding company, filed for reorganization Wednesday under Chapter 11 of the U.S. Bankruptcy Act, court officials said.
Court documents show the company owes creditors approximately $300 million.
The action was confirmed by Jesse Meeks, a clerk in U.S. Bankruptcy Court in Los Angeles, where papers were filed. The move came in the wake of numerous lawsuits filed against Triad by its creditors.
Puts Creditors on Hold
The filing effectively places all of Triad's creditors on hold while the bankruptcy court obtains a full accounting of Triad's remaining unmortgaged assets. A bankruptcy judge then will decide which of dozens of creditors has first claim on Triad's assets.
Under Chapter 11 reorganization, Triad will retain control of its assets while it works out a plan to repay creditors. The company has 120 days to file a reorganization plan with the court.