Ryan Leestma, Developer of Controversial Muskegon Marina Housing, Files Chapter 11 Bankruptcy in Florida

A Muskegon developer has filed for bankruptcy protection following legal disputes over a highly controversial marina and housing project that has been at the center of community debate since its announcement.

Ryan Leestma's company, Leestma Management, filed for Chapter 11 bankruptcy in Florida on April 1, according to court documents. The filing comes in the wake of legal disputes surrounding the Adelaide Pointe development after Independent Bank accused Leestma of defaulting on loans totaling around $28 million.

The Adelaide Pointe project, a marina and housing development in Muskegon, was placed under a receivership early this year. Just days after the receivership announcement, Leestma told 13 ON YOUR SIDE he would be selling the development. At that time, he said the sale would satisfy their obligation to not only Independent Bank but all of the banks that have loaned them money.

It is unclear whether that sale fell through or what the state of those plans is now. However, Leestma is still listed as the owner of the development on its website.

The voluntary petition was filed in the U.S. Bankruptcy Court in the Middle District of Florida. Leestma Management is registered in Bradenton Beach, Florida. In the filing, Leestma Management estimated the company's assets to be between $50 million and $100 million.

In filing for Chapter 11, Leestma will be able to continue operating Adelaide Pointe as a "debtor in possession" while he puts together a plan for how he will pay off the debts. The filing indicates that there will be funds available for distribution to unsecured creditors.

The case number is 26-02696. Leestma Management filed for Chapter 11 protection after facing accusations from Independent Bank over loan defaults related to the Adelaide Pointe project.

13 ON YOUR SIDE has not been able to reach Leestma for comment on the bankruptcy filing.

The Adelaide Pointe development has been a source of controversy in Muskegon since its announcement. The project includes a marina and residential housing components in the city. The receivership placed on the development early this year raised questions about the financial stability of the project and its ability to complete construction.

The bankruptcy filing does not address whether the Adelaide Pointe project will continue or be abandoned. Under Chapter 11 bankruptcy protection, the company can continue operations while working through its debts with creditor supervision.