Liabilities exceed assets for fund making hard-money loans
Desert Capital Real Estate Investment Trust, a Henderson-based fund that makes hard-money loans, reported Wednesday that its total amount of liabilities were more than double its assets in the first quarter ended March 31.
The company, controlled by Chief Executive Todd Parriott, had $25 million in assets and $56 million in liabilities. It lost $1.9 million in the quarter, down from a loss of $2.8 million last year.
Separately, Taberna Preferred Funding VI Ltd. and others filed a petition on April 29, seeking to force Desert Capital into involuntary Chapter 11 bankruptcy. Under Chapter 11, Desert Capital could continue operations while the case is pending.
Desert Capital solicited investments from individuals and used the money to make short-term mortgage loans to developers and others with real estate for collateral.
