The developer behind the $2 billion Ritz-Carlton Paradise Valley and The Palmeraie luxury residential development has filed for Chapter 11 bankruptcy protection days ahead of a scheduled foreclosure sale.

Multiple entities connected to Five Star Development filed for the bankruptcy protection Nov. 4 in the Southern District of Texas.

The company reported estimated assets between $500 million and $1 billion against estimated liabilities between $500 million and $1 billion, according to bankruptcy documents.

What move means for Palmeraie, Ritz-Carlton Paradise Valley

The move offers Five Star a reprieve in its high-stakes litigation with an affiliate of Madison Realty Capital, the lender for the 122-acre Paradise Valley megaproject.

Madison had been pursuing a November foreclosure sale

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