Local builder Pathway Developments and its president Michael F. Teufel filed for liquidation bankruptcy Sunday night, according to Arizona bankruptcy court records.
Preliminary filings for Teufel-led Pathway Developments Inc., Pathway Holdings LLC, Pathway Sabino LLC, Pathway Cerro LLC, Ventana del Cerro LLC, Raven Springs LLC and for Teufel, himself, all indicate that no funds will be available for unsecured creditors.
Pathway Developments and its related corporate entities have been falling into collapse over the course of the past year. Once an acclaimed Tucson builder, the company has been subject to more than two dozen lawsuits filed by home-buyers, investors, lenders and others as the company fell into ruin.
Home-buyers have alleged that Pathway failed to start or complete their homes, leaving them with hefty construction loans to pay off and nothing to show for it. Investors have also alleged in lawsuits that Teufel stole money from some development partnerships, and one lender alleged Teufel shifted assets to avoid repaying a loan.
Teufel's personal filing provides an estimate of 200 to 999 creditors, assets of $100,000 to $500,000 and debts of $50 million to $100 million.
Pathway Developments Inc.'s filing provides an estimate of 1 to 49 creditors, $50,000 or less in assets and $1 million to $10 million in debts.
Pathway Holdings LLC's filing provides as estimate of 1,000 to 5,000 creditors, assets of $50,000 or less in assets and $1 million to $10 million in debts.
Two other Pathway-related companies, Pathway Sabino and Raven Springs, each have 1 to 49 creditors and less than $50,000 in assets, according to filings. Pathway Sabino has debts of $500,000 to $1 million and Raven Springs has debts of $1 million to $10 million, according to the preliminary estimates.
Documents for Ventana del Cerro and Pathway Cerro, which were filed earlier, showed that each has 1 to 49 creditors. Ventana del Cerro has between $1 million and $10 million in assets and the same in liabilities, according to the filings. Pathway Cerro has $50,000 or less in assets and $500,000 to $1 million in debts.
More detailed financial filings were not yet available.