A Carbondale-based lender has objected to a Colorado developer’s Chapter 11 bankruptcy filing, stating that it was done in bad faith. Downtown Aspen Investments LLC filed a motion with the bankruptcy court to dismiss the filing of Aspen Legacy Holdings LLC, the owners of Hyman Avenue Buildings where Little Annie’s Eating House and the former Huntsman Gallery are located, as well as the parking lot at the corner of Hunter Street and Hyman.
In the ongoing legal tussle between the two companies, Downtown Aspen Investments alleged that Aspen Legacy had defaulted on a loan given to it for $9.2 million in October 2008. Consequently, Downtown Aspen Investments called for a judicial decision to be made on whether to call for receivers to oversee Aspen Legacy’s financial dealings. A Pitkin County District court judge was supposed to have made a ruling on this matter at a hearing last month.
But the hearing was put off when Aspen Legacy filed for Chapter 11 bankruptcy protection June 23 in the US district court in Denver. This motion is seen as an attempt to circumvent the move by Downtown Aspen Investments to place Aspen Legacy under receivership.
According to the motion filed by Downtown Aspen Investments, Aspen Legacy’s bankruptcy filing is also invalid because it was done by Edward Dingilian who was dismissed from his position as manager of Aspen Legacy before the filing was done. Thus he had no authority to file for bankruptcy on behalf of Aspen Legacy.
Dingilian is alleged to have misused about $500,000 of company funds and siphoned out his gains into family bank accounts in New York. The motion points out that the bankruptcy filing was done less than 24 hours before the judge was due to give judgment at the hearing that would have exposed Dingilian’s embezzlement.
However, Aspen Legacy’s attorney, Shaun A. Christensen said that the company chose to file for bankruptcy because it was more advantageous to the company than receivership, in which it would have to hand over control of its finances to the receiver. According to Christensen, Aspen Legacy planned to either sell or refinance the Hyman Avenue Buildings which are currently worth $28 million.
But Downtown Aspen Holding’s motion to dismiss contends that Aspen Legacy’s reorganization plan is not feasible. The revenue it generates from Little Annie’s restaurant and the lease of the parking lot are insufficient even to cover tax and insurance payments, let alone service its loan. Hence refinancing the property is not viable.
Bankruptcy is a way to resolve your debt crisis provided by the law. If you or your business are experiencing debt problems, consider filing for bankruptcy to start afresh in your financial status. Call us at (813) 200 4133 for a free consultation or visit http://tampabankruptcy.pro.
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Filed under Chapter 7 (Tampa) by on Sep 8th, 2010. Comment. 
Auto supplier Cooper-Standard has exited bankruptcy in style – by making a profit. Cooper-Standard, the company that was set up as an offshoot of Cooper Tire and Rubber, emerged from bankruptcy last month with a healthy first quarter profit of $3.4 million. Now that it has exited Chapter 11 bankruptcy, it is now on the lookout for acquisitions and intends to hire workers. Its CEO, Jim McElya described the whole exercise as a ‘very successful restructuring’.
Cooper-Standard’s exit from bankruptcy coincided with an upturn in auto production this year and this helped its transition from bankruptcy tremendously. Cooper-Standard is biggest maker of auto body-sealing systems in the world. They produce items like the seals between the doors and windows to make them watertight and keep out the dust. The company also makes tubes for the transmission of fuel, coolant and other fluids through a vehicle as well as parts for reducing vibration and noise.
In addition, another factor that aided its emergence from bankruptcy was its cost cutting measures to withstand the economic recession. Shortly after its Chapter 11 bankruptcy filing in August 2009, Cooper-Standard had already started to restore pay that had been cut and the company’s 401(k) match.
When it filed for Chapter 11 bankruptcy, Cooper-Standard was laden with $1.1 billion in debts, largely due to its formation in 2004 from its tire making parent company and its ownership change to the Cypress Group and Goldman Sachs. As the auto industry ground to a standstill in late 2008 and 2009, Cooper-Standard became one of many auto companies to file for bankruptcy as suppliers across the board struggled to stay current with their loan obligations.
When it entered into Chapter 11, the company managed to reduce its debts by almost 60% to $480 million. It also paid off most of its creditors in full.
McElya points out that the company intends to focus on expanding its business in Asia and putting more of its products on vehicles. The company’s goal is to increase its product per vehicle from about $100 to $500. At this point, the majority of Cooper-Standard’s business is made in North America and Europe with only 7% coming from Asia. The company aims to increase that figure to 25% to 30% as Cooper-Standard eyes new investment and potential acquisitions. Cooper-Standard employs about 16,000 workers worldwide, with 900 in Michigan.
In particular, Cooper-Standard wants to shift its focus to smaller vehicles that still provide luxury as auto manufacturers producing such units would not want to scrimp on body seals and engine mounts that reduce noise.
Bankruptcy has saved many individuals and companies from financial ruin and given them a new start. Call us at (813) 200 4133 for a free consultation or visit http://tampabankruptcy.pro.
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Filed under Chapter 7 (Tampa) by on Aug 28th, 2010. Comment.
Pasadena Playhouse became the second theater company to file for bankruptcy in California after Opera Pacific in November 2008. In bankruptcy papers filed in US Bankruptcy Court, the non-profit theater company listed its assets as worth $102,000 in cash and savings while its debts amounted to $2.3 million, most of which are subscriptions from some 1,000 to 5,000 subscribers who made advanced payments on plays that are yet to be produced. A detailed list of creditors was not available.
The theater’s other assets come up to about $7 million but $5.9 million out of this amount comprises of pledges for specific purposes. A major part of the pledges is for adding an annex to the existing seating that would accommodate another 300 to 400 seats to the existing 684-seat main stage and 86-seat Carrie Hamilton Theater. As such these funds are not available for the general running of the theater.
Pasadena Playhouse also has $385,000 in accounts receivable, $145,000 in items such as prepaid insurance and just over $1 million in fixed assets comprising of theater equipment, office equipment and improvements to its two leased stages.
Among its liabilities are $422,000 in accounts payable, $1.1 million in subscriptions to its six-show 2010 season (only one show has been performed so far before the theater shut down), two bank loans amounting to $572,000 and another loan of $49,000 from the city of Pasadena.
Pasadena Playhouse has not had a show since February 7. It took them quite a long time to decide and prepare the documents required for a Chapter 11 bankruptcy filing. They have since appointed a bankruptcy attorney firm and hope to set in order their reorganization plans to bring the theater back into production. Stephen Eich, the Executive Director of Pasadena Playhouse, had no comments about what might happen next and simply stated the company’s reliance on their attorneys.
In March, KOST-FM filed a lawsuit against the playhouse in Los Angeles Superior Court, for $31,300 including interest and attorney fees for breaching a 2009 contract to air 30-second commercials for productions and do on-air ticket giveaways.
In 2008, the theater grossed $3.1 million in ticket sales and obtained a further $1.4 million in ‘production enhancement’, which was money that outside commercial producers pay to theater companies to help them put on plays that the producers could send to Broadway. Besides these, the theater managed to raise donations amounting to $1.5 million. There was another $3 million that came in the form of gifts designated for increasing the theater’s seating capacity.
On the other hand, the theater’s expenses for that year came up to about $7.4 million excluding bookkeeping losses like depreciation of fixed assets. That brought about a loss of about $1.3 million.
Filed under Chapter 7 (Tampa) by on May 16th, 2010. Comment.
Zayat Stables Files Chapter 11 Bankruptcy
If you are into horse racing, you would have heard of the name Ahmed Zayat, owner of Zayat Stables and breeder of fine thoroughbred race horses. At last year’s Kentucky Derby, one of Zayat’s horses, Pioneer of the Nile won second place. Zayat himself won the distinction of being the highest earner among thoroughbred owners in 2008, grossing some $6.9 million that year.
However all this was not enough to stave off financial difficulties. Zayat made a Chapter 11 bankruptcy filing in New Jersey last Wednesday. He is currently embroiled in a legal tussle with Fifth Third Bank, who is suing him over more than $34 million the bank says he borrowed for a range of expenses. Arising out of the lawsuit, a hearing is to be held next week to decide whether Zayat Stables should go under receivership. But now that Zayat has filed for bankruptcy, it is uncertain if the hearing will proceed.
St Mary’s Hospital Emerges from Chapter 11 Bankruptcy
With debts amounting to $100 million, St Mary’s Hospital in New Jersey filed for Chapter 11 bankruptcy in March 2009. After less than a year, the hospital has now received official approval for their reorganization plan from a federal bankruptcy judge. Hence, it is determined to emerge reinvigorated and more committed to serving the community and their long-serving physicians. With the exit from bankruptcy comes a new ER fast track, technical equipment for the oncology and cardiology programs and expansions in other key programs.
St Mary’s hospital is a 292 bed non-profit hospital supported by the Sisters of Charity of St Elizabeth besides sharing $40 million in state grants with eight other hospitals. At the height of its bankruptcy process, more than 500 staff workers in St Mary’s agreed to receiving a 5% salary deduction, which was subsequently reduced to 4% due to the hospital’s reorganization. Now that it has emerged from bankruptcy, the hospital will incrementally restore the salaries of its staff and even award pay rises to deserving employees.
St Mary’s was not the only hospital that had to endure financial constraints. Since 2007, six New Jersey hospitals have likewise filed for bankruptcy. Five of those had either closed or sold their assets. St Mary’s has the distinction of being the first hospital to emerge from Chapter 11 bankruptcy in New Jersey.
If your business is struggling with insurmountable debts, it is recommended that you consider filing for bankruptcy protection. Call our Tampa bankruptcy attorneys at (813) 200-4133 for a free consultation. We will tailor a bankruptcy proposal for your specific business needs.
Filed under Chapter 7 (Tampa), Tampa Bankruptcy News by on Feb 11th, 2010. Comment.
For the last few years, the East Chicago Community Health Center has been losing money in their operations despite government funding. These loss-making activities culminated in a Chapter 11 bankruptcy filing on January 12. As a consequence, the board gave its long time executive director and founder, Cornell Brantley the boot. The Center carries out essential health services to the public irrespective of their status, income or insurance standing. Presently, the Center serves about 12,000 patients and its bankruptcy jeopardizes their very existence.
According to its bankruptcy filing, the Center has assets worth $5.1 million while its liabilities amount to $2.3 million. In the course of its operations, the Center has lost over $2 million over a period of 5 years. However, it is still allowed to run its operations but under federal bankruptcy rules. This means providing services, paying workers and vendors from the revenue generated.
But the financial deficits have compelled the Center to cut down on some of its services in an effort to stem the decline. Centier Bank, one of the Center’s creditors, agreed to receive a reduced payment on the mortgage it holds for the loan of $1 million for a building it financed. It suspended its Obstetrics and Gynecology services in one of the neediest areas in Illinois while it has not given dental treatments since 2008.
A spate of financial mismanagement was found to be the cause of the Center’s losses. In general, the Center made expansion plans beyond its means, for example it entered a three-year rent and equipment lease for a Hammond satellite clinic it has not operated in years. It also employed too many physicians when the number of patients and amount of revenue did not warrant it. Furthermore, the Center obtained a $1 million to build and staff two clinics at separate sites. What made it worse was that contracts like the one for the Hammond clinic was concluded by the management even before presenting them to the board, according to one former board member, Luis Molina.
To make matters worse, the Center is also experiencing strained relationships with other parties. The Healthy East Chicago building, the Center’s previous landlord tried to evict them over nonpayment of $301,708 in back rent. The Center also owes the city of Chicago $68,820 in unpaid telephone charges and business bills. In addition, they also owe other hospitals, namely St. Catherine hospital and Methodist hospitals together more than $250,000.
Should the Center be forced to shut down altogether, it would be a severe loss to the public in East Chicago.
Don’t let bankruptcy be your last resort. Call us, your friendly Tampa bankruptcy attorneys at (813) 200-4133 for a free consultation today and we will show you how bankruptcy can protect you from your creditors and provide you a fresh start financially.
Filed under Chapter 7 (Tampa), Tampa Bankruptcy News by on Feb 4th, 2010. Comment.
