JER Investors Trust, a mortgage REIT, filed for bankruptcy.
The REIT owes more than $100 million to creditors but has less than $50 million in assets, according to Bloomberg, citing a Chapter 11 petition filed in Wilmington, Del.
The REIT, partially owned by private equity firm C-III Capital Partners, specializes in managing mortgage-backed securities and various debt instruments linked to commercial real estate.
The filing follows another REIT bankruptcy filed by mall owner Pennsylvania REIT in earlier December, marking its second filing in three years. PREIT aims to cut $880 million in debt and become a privately owned company. In court documents filed at the U.S. Bankruptcy Court for the District of Delaware, the mall REIT lists $2 billion in total debts, with assets of $1.7 billion. Before filing, the company had “robustly marketed the Company’s properties, sought capital infusion and otherwise explored any available options,” it said in a statement.
