Developers of the Ritz-Carlton resort in Paradise Valley have filed for bankruptcy.

Five Star Development says the filing is intended to create a clear, court-supervised path toward completing Ritz-Carlton Paradise Valley, The Palmeraie — a 122-acre master-planned resort, residential, and luxury retail project located at 7000 E Lincoln Dr.

Five Star and its lender New York-based Madison Realty Capital have been squabbling for months now. In May, Madison filed a notice of trustee’s sale, signaling foreclosure of the property. The next month, Five Star filed a lawsuit against Madison claiming the lender undermined and took over “the very project it agreed to finance.”

Filing for bankruptcy halts foreclosure proceedings, and Five Star says it will preserve control over the project and stre

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