Five Star Development, the developer of the Ritz-Carlton Paradise Valley, filed Nov. 4 for Chapter 11 bankruptcy protection, which is intended to create “a clear, court-supervised path” to finishing the resort, company leaders said.

The filing creates an automatic stay, which halts most lender collection activity, including foreclosure proceedings. The project’s main lender, Madison Realty Capital, has filed for foreclosure on the project, and the development was scheduled to go to a foreclosure auction in November. The development is located at Lincoln Drive and Scottsdale Road.

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