Receivership

February 23, 2011

NFL Star Filed for Bankruptcy

0
Former Chicago Bears star Dave Duerson, who committed suicide recently had filed for bankruptcy protection in September 2010.  In his bankruptcy filing, Duerson listed a federal court judgment his food company won in 2004 as one of his assets.  The judgment amounted to $34.5 million and was given against a company that filed for bankruptcy in 2005.  Ironically, the amount was never collected.  Without the awarded amount, Duerson would have been in debt by up to $14 million, largely due to the failure of his food former company, Duerson Foods LLC that went into receivership in 2006.  Duerson told the Chicago Tribune in 2007 that he was still hopeful to collect the judgment.
In his bankruptcy filing, Duerson stated that his ex-wife is entitled to 30% to 50% of whatever judgment is collected.
Last December, Duerson’s wife Alicia claimed that he owed her $70,000 and had not listed some of his assets like his two Super Bowl rings and a large bronze trophy for being named the Walter Payton Man of the Year in 1987.  Duerson’s lawyer, Zach Shelomith, explained the missing items from Duerson’s list of assets when he said their ownership had been transferred some time ago to the Dave Duerson Foundation and that the mementos would be displayed in a sports Hall of Fame in Indiana or Illinois.
Shelomith said Duerson was negotiating with this ex-wife to settle their dispute.
Other assets listed by Duerson included $846 in his checking account and a 2002 Cadillac Escalade that had been driven 140,000 miles worth $5,750.
In 2007, after his food company was forced into receivership, Duerson’s financial problems began to escalate.  His Highland Park home, which he mortgaged to help finance his food company operations, was issued with a foreclosure notice.
Earlier in April 2004, Duerson sued a freezer supplier that he believed had caused a lot of difficulties for his company and himself.  The Eastern Wisconsin district court awarded Duersosn $34 million in damages when it gave judgment to him.
In one October filing, Duerson said he was trying to end a $379-a-month storage lease in Morton Grove where he kept a Chippendale desk he bought in 1998, a remote-control “high-rise bar”, a dismantled 1987 Brunswick pool table, four black metal bar stools and two black directors’ chairs.  In his memo to the court, Duerson explained his difficulty in selling or giving away the items.  What was in storage also included his sons’ two trumpets from grade school.


Related Blogs

Tags: , , , , , , , , , , , , , , , , , , , .

Filed under Chapter 7 (Tampa) by dmishesq on Feb 23rd, 2011. Comment. #

September 8, 2010

Lender Cries Foul over Colorado Developer’s Bankruptcy

0

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.

Related Blogs

    Tags: , , , , , , , , , , , , , , , , , , , .

    Filed under Chapter 7 (Tampa) by dmishesq on Sep 8th, 2010. Comment. #

    August 13, 2010

    7 Cities on the Bankrupt List

    0

    Some of America’s cities’ financial health is as bad as that of the debt-strapped PIGS countries (Portugal, Italy, Greece and Spain). 7 US cities in particular have had their municipal bonds downgraded by several rating agencies to junk level. In other words they are worthless. One analyst said that America’s short-term budget crisis, long-term growth prospects and need for austerity are similar to Greece, obviously not an enviable comparison.

    Want to know which 7 US cities are the most financially challenged ones?

    Here they are in no particular order:

    Harrisburg, Pennsylvania and Woonsocket, Rhode Island – last quarter, Moody’s Investor Services declared their bonds below investment grade.

    Detroit and Pontiac in Michigan, Harvey in Illinois and Littlefield in Texas were rated at the bottom by Fitch Ratings.

    Central Falls in Rhode Island likewise had the debts issued by them downgraded to junk level by Standard and Poor’s (S&P).

    So there you have it, America’s 7 worst cities in terms of their financial worth. All of them have a large proportion of its citizens who are unemployed, resulting in poor property tax collections (which are the main source of revenue for just about every city). Meanwhile, pensions continually need to be paid, debts need to be serviced and operating expenses continue to rise. And due to their worsening credit standing, these cities find it that much harder to obtain financing for their usual projects like sewerage and infrastructure.

    Central Falls was put under receivership last week and had their ratings cut by Moody to C, just one level above default. Its finances and accounts are now being managed by a court-appointed lawyer. This town of just 19,000 inhabitants is running a debt ratio of above 20% of its budget for 2010 and 2011 and cannot afford to pay its pension fund.

    In the same way, Moody has also downgraded the general obligation bonds of Harrisburg to B2, which is 5 notches below investment grade. That of Greece was rated A3 by Moody’s, which means it is still worth investing in. S&P has brought down Greece’s debt rating to junk standard last month but it is still just one level below investment while Fitch rates Greece’s bonds as slightly better than speculative grade.

    As for Harrisburg, their city controller, Dan Miller has been urging city authorities to file for Chapter 9 bankruptcy, something that only 245 municipalities out of over 80,000 has done since 1937. However, mayor Linda Thompson is cautious about that move because it would have grave repercussions on potential investments into the city and is considered political suicide.

    Related Blogs

    Tags: , , , , , , , , , , , , , , , , , , , .

    Filed under Chapter 7 (Tampa) by dmishesq on Aug 13th, 2010. Comment. #

    February 11, 2010

    More Bankruptcy News

    0

    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.

    Tags: , , , , , , , , , , , , , , , , , , , .

    Filed under Chapter 7 (Tampa), Tampa Bankruptcy News by dmishesq on Feb 11th, 2010. Comment. #

    « Previous 1 2

    Made with Semiologic Pro • Classic, Beige skin by Denis de Bernardy
    Login
    SEO Powered By SEOPressor