The economic meltdown which has driven financing rates at a skyrocketing rate has indeed taken its toll on real estate commercial properties. Kobra Properties has succumbed to such economic pinch and it has decided to let go of its 16 most troubled assets and filed for bankruptcy.

Kobra Properties founder and President Abe Alizadeh thinks its no use holding on to the 238-acre problematic properties of Kobra out of its 900-acre real estate portfolio especially if the company wants to ride out of its bankruptcy declaration and continue to become a more viable property developer. Planned to be abandoned are mostly unfinished office, retail and restaurant projects— assets which Alizadeh looks at as “burdensome, of inconsequential value and have no equity or value” as he stated in court papers.

That could be a wise move to unburden the company of its $390 million balance which has prompted it to file for Chapter 11 protection as lenders are already starting to get a grip on its assets as Kobra fails to pay its loans. The court has already granted receivership to lenders who will be allowed to repossess some assets that Kobra has decided to abandon.