Capri condo developers settle bankruptcy case

Capri on Caldwell, the high-end condominium project that filed Chapter 11 bankruptcy in late February, recently settled its case and is now under new ownership.

Birmingham's Red Mountain Bank, which was owed $16 million based on public records, announced late Thursday that the condominiums are now owned by Capri Real Estate LLC.

"We worked out a settlement that ended the bankruptcy and freed up the property so sales activity could continue," said Paul Rogers, an executive vice president of the bank. "We are very pleased that not only has the Capri Condominium bankruptcy been settled, but Red Mountain Bank and the other lenders incurred no loss in this settlement."

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The condo's original developer, the Netherlands-based Euro American Investors Group, began to have financial troubles amid the nationwide credit crunch after its developments in the Florida market went under. On Feb. 6, the company made the filing in the U.S. Bankruptcy Court Middle District of Florida, where it operated its U.S. headquarters, according to court documents.

Two years ago, a rush of condominium projects were announced in the Birmingham area, including Capri on Caldwell, located at the corner of Niazuma and 27th Place South

Overall, the high-rise condo has 48 condominium units. At least 14 of the units have been sold and nearly 20 more are currently under contract, according to a press release. In the past, a number of condos on site have sold for some $1.5 million, public records said.