Melchiori Construction on 9/22 filed an involuntary petition in federal court designed to throw Chapala One LLC into Chapter 7 bankruptcy. Such a petition can be filed by creditors against debtors. In this case, Melchiori won a $5.8 million jury verdict last summer in a fraud trial against the LLC, which owns the failed condo complex near Gutierrez Street. A judge will have to determine whether the petition is well-taken, and could then assign a trustee to take over control of Chapala One, which had been due for foreclosure on 9/23.
