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The company said it hopes to file a plan in bankruptcy court by next Friday incorporating settlements with unsecured creditors and major senior lenders.
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Commercial lenders typically demand higher rates for unsecured credit.
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Much of the increase in borrowing has been by people on lower incomes who would once have been denied unsecured credit, but can now get it because of the development of financing techniques that allow lenders to spread their risks by selling securitised bundles of loans in the financial markets.
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Mezzanine lenders typically make high-rate (18% to 24%) loans--unsecured in many large projects--to the converter to help him cover the building's mortgage while the property is in flux.
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