Lenders scramble to find way out of property empire collapse

The court-ordered breakup of former child actor Robby Clark’s insolvent 400-property real estate portfolio has devolved into a multiparty scramble to find value amid the wreckage.

The unwinding of $144-million in debt Mr. Clark amassed before the collapse of his companies (referred to as Balboa et al. in court documents) comes after attempts to market the properties as a package failed. While some lenders are being given a chance to bid on the properties they loaned against, many are decrying the expensive buyout terms, the barrage of communications urging different collective action options and expressing severe misgivings about the entire attempt to restructure under the Companies’ Creditors Arrangement Act.