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Pathway Developments - Arizona developer




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The Arizona Daily Star reports that Tuscon-based developer Pathway Developments filed for Chapter 7 bankruptcy protection on September 21. According to the article:

Detailed financial information has not yet been submitted to the court, but preliminary filings indicate that the debts of Teufel and his companies could range from $55 million to more than $150 million. The documents also state that there will likely be no funds available for unsecured creditors.

Sunday's Chapter 7 bankruptcy filings included Teufel-led Pathway Developments Inc., Pathway Holdings LLC, Pathway Sabino LLC and Raven Springs LLC as well as a filing by Teufel himself. Last week, two other Pathway-related entities also filed for Chapter 7 liquidation bankruptcy: Pathway Cerro LLC and Ventana del Cerro LLC.

Once an acclaimed developer with projects all over Tucson, Pathway has collapsed over the past year. The company has been subject to more than two dozen lawsuits filed by home-buyers, investors, lenders, subcontractors and others as the business fell into ruin.

In addition to the wake of lawsuits filed against Pathway, which was founded by Michael Teufel (who also has filed for bankruptcy), the article notes that Pathway homeowners have been left with incomplete homes and unpaid construction loans.

Pathway Developments apparent website, appears to be down.

One real estate website described Pathway Developments as following:

Pathway Developments Inc. was founded by Michael F. Teufel in 1993 after working alongside several of Tucson's most successful real estate developers. A graduate of the University of Arizona and a native Tucsonan, Mr. Teufel has managed the growth of Pathway from general contractor to developer and asset manager. Pathway's portfolio of properties includes residential, office, and other commercial ventures as well as one of the best custom builder divisions in Southern Arizona. When Mr. Teufel returned his attention to home building, Pathway had already earned the reputation as Tucson's best custom home builder. Today, Mr. Teufel and his team focus on developing Tucson's premier high density residential neighborhoods.

Based on the listed amount of debt Pathway Developments in their varying bankruptcy filings, we are classifying Pathway as a "major" implosion. However, we could use additional details as to their size including peak annual closings/homes built and employees. If you can provide any of this information, or elaborate on Pathway's closure, please let us know over email or post a comment below or in our forums.

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Important: This company is on our list of builder operations that have "imploded" (see also ailing lenders). This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid declines in enterprise value; or abnormal "bail-out" by corporate parents or peers in order to continue to operate. The builders may be residential or commercial.