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Colonnade plans fight to stop bankruptcy bid Creditors push for Chapter 7


The owners of the Colonnade condominium and hotel complex plan to try next week to stop a creditors' bid to force the complex into bankruptcy.

Colonnade attorney Paul Nussbaum was on vacation yesterday and could not be reached for comment. But Lawrence Yumkas, a lawyer in Mr. Nussbaum's firm of Whiteford, Taylor and Preston, said legal papers would be filed soon.

Washington-based Tiber Construction Co. and two other creditors filed a petition Tuesday to force Colonnade L.P., which owns the Colonnade, into involuntary Chapter 7 bankruptcy, which provides for liquidation of the company.

The move stopped an auction scheduled the same day by Marine Midland Realty Credit Corp., which held a $16 million mortgage on the Guilford property.

Steve Johnson, a lawyer for Tiber, which claims it is owed $3.9 million for construction work at the Colonnade, said the bankruptcy action would let Tiber discover whether Colonnade L.P. has assets other than the building to satisfy the debt.

And in another twist in the proceedings, the Marine Midland mortgage was sold to a Washington real estate company for $10 million.

The buyer was Bresler & Reiner Inc. Employees at the company said Chairman Charles Bresler and President Burton Reiner were not in the office yesterday.

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