I think you are right defianttruth, they must have borrowed against properties they already owned and were at a point when they couldn't afford even the interest repayments. It explains why they had to sell their New York property at a time which was far from ideal and when property prices had slumped.
It is interesting that they have listed themselves as a printing and construction business. All they need now is for the IRS to pick up on it and start taxing them on the sale of their buildings.