Monday, November 10, 2008

DBSI Commences Voluntary Chapter 11 Bankruptcy Proceeding

DBSI Inc, which together with its subsidiaries comprises a network of real estate and non-real estate entities throughout the country, commenced a voluntary chapter 11 proceeding in the United States Bankruptcy Court for the District of Delaware on November 10, 2008.

DBSI's businesses have been significantly impacted by the recent turmoil in the real estate financial and credit markets, the general deterioration of the economy and the historic declines in the stock market. These problems were exacerbated recently by the actions of the various parties and, in the last week, the commencement of legal actions that DBSI submits are without merit and only serve to impede DBSI’s efforts to effectively address its financial difficulties.

As a result of these circumstances, DBSI determined that it had no alternative but to commence a voluntary chapter 11 proceeding in order to implement its plan for an orderly restructuring to maximize value for all parties-in-interest and to immediately stay the efforts of parties desiring to pursue their own individual interests.

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