East West Resort Development, the developer of Tahoe Club and Old Greenwood in Truckee, California, filed for bankruptcy on Feb. 16, a victim of a commercial real estate crash, Reuters reported.
East West said in court documents it was forced to file for bankruptcy as its real estate sales have fallen nearly 60 percent and it was unable to secure funding to maintain its properties.
Crescent Resort Development Inc, which owns 93.4 percent of East West Resort Development, is a unit of Crescent Real Estate Equities Co, a real estate investment trust acquired in 2007 by Morgan Stanley for $6.5 billion.
Unable to meet debt payments, Morgan Stanley was forced to turn the company over to a joint venture of Barclays Capital and Goff Capital, a firm led by John Goff who sold Crescent to Morgan Stanley.
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