The real estate investment trust  — which counts the private equity firm C-III Capital Partners among its top shareholders — owes more than $100 million to creditors but has less than $50 million of assets, according to a Chapter 11 petition filed in Wilmington, Delaware, on Friday. Companies use Chapter 11 of the U.S. Bankruptcy Code to temporarily halt most debt payments while they try to work out a plan to stay in business.

JER Investors manages a portfolio of mortgage-backed securities and other types of debt tied to the commercial real estate market, according to the company's website. As interest rates climbed this year, commercial properties came under pressure, especially firms that lost tenants during the pandemic as office-tower workers stayed home.

Earlier this month, mall owner Pennsylvania Real Estate Investment Trust filed for bankruptcy for the second time in three years. In November, the coworking behemoth WeWork Inc. filed for bankruptcy with plans to cut back a sprawling real estate portfolio that spanned 39 countries.

C-III Capital owns at least 8.4% of JER Investors, according to court papers. JER also owes C-III nearly $20 million, the bankruptcy filing shows. The Bank of New York Mellon Trust is owed $93.9 million, according to the Chapter 11 petition.

The case is JER Investors Trust Inc., 23-12109, US Bankruptcy Court, District of Delaware (Wilmington)