February 26, 2012
Grubb & Ellis Co. files for bankruptcy protection
Grubb & Ellis Co. says it has filed for bankruptcy protection in a bid to stave off creditors amid mounting debt.
The Santa Ana, Calif.-based commercial real estate company also said Tuesday it has arranged to sell most of its assets to the parent of rival commercial real estate services company Newmark Knight Frank.
The proposed sale to BGC Partners Inc. will require court approval as part of Grubb & Ellis' Chapter 11 bankruptcy process.
The company filed for bankruptcy protection Monday in the Southern District of New York.
BGC also has agreed to provide some of the financing needed to keep Grubb & Ellis operating while in bankruptcy.
In the filing, Grubb & Ellis listed $150 million in assets and $167 million in debt as of the end of last year.
Grubb & Ellis has offices in San Antonio, Austin, Dallas and Houston. Its McAllen office is an affiliate that offers services in the Rio Grande Valley and in Northeast and Central Mexico.
The San Antonio office has 19 sales professionals and six staff employees, according to the company's website.
Ernest Brown, managing director at the San Antonio office of Grubb & Ellis, said business should keep operating as usual.
The San Antonio operations were profitable last year and are having the best start to the year in five to 10 years, he said.
"It frazzles a lot of nerves when these things happen," Brown said. "We just have to deal with that as we go along."
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