Misery Index: Week of May 22, 2017


Chain of 58 Medical Centers Eases Financial Pain in Bankruptcy Court  

21st Century Oncology Holdings and 57 affiliates sought relief from up to $10 billion in liabilities. Interim CEO Paul Rundell signed off on the petition, which was filed in the Southern District of New York. The company owes $368,177,173.00 in unsecured notes to Wilmington Trust in Connecticut and $7,871,701.15 to Dr. Ben Han in Florida.

Read Mr. Rundell’s declaration here

Racing School Makes Pit Stop in Bankruptcy Court

One of the largest racing schools in the world sought chapter 11 safety in the the Southern District of New York. The petition for the Skip Barber Racing School LLC claimed up to $10 million in assets and up to $50 million in liabilities. Financial difficulties emerged due to an inadequate inventory of open wheel race cars, according to Chairman and CEO Michael C. Culver. Some $1,225,000.00 in track rent is owed to Lime Rock Park in Lakeville, Connecticut and $249,000.00 is owed to People’s Credit Card. Lime Rock Park is reportedly owned by Mr. Barber.

Read Mr. Culver’s declaration here.

Funds Managed by 5 Star Wealth Advisor Land in Bankruptcy

The CA Real Estate Opportunity Fund I, LLC,  California Indexed Growth Fund, LLC, Secure California Income Fund and the CA Real Estate Opportunity Fund I, LLC landed in the Central District of California. Howard Grobstein is listed in each petition as the authorized representative and chief restructuring officer but  SEC filings name William Jordan as the executive officer and manager of the Secure California Income Fund, CA Real Estate Opportunity Fund I, LLC and the CA Indexed Growth Fund, LLC. A week ago, William Jordan Investments Inc  and some 22 affiliates sought protection from liabilities of up to $10 million in their own chapter 11 petitions. Named Five Star Wealth Manager Award Winner by Orange Coast Magazine, Mr. Jordan’s firm typically attracted investments by offering membership units through Private Placement Memorandum and investors could also participate in certain funds with loans and promissory notes in exchange.

Read Mr. Jordan’s declaration here

Developer Seeks Mercy in Bankruptcy Court After Breach of Contract Suit

The Belleville Development Group sought chapter 11 safety in the U.S. Bankruptcy Court for the District of New Jersey. Signed by managing member Anthony Regan, the petition claims up to $10 million in assets and liabilities. The group was initially backed by Chinese investors who invested $4 million in a Belleville, N.J., property dubbed The Imagine Center. However the deal soured, according to court filings, when the Belleville Development Group rejected a call for sale of the land that occurred 12 months after Essex Township failed to adopt the redevelopment plan.

Read Hong et al v Belleville Development Group suit here

Commercial Real Estate Company in Louisiana Seeks Shelter in Bankruptcy

Ford’s Fine Foods, Inc sought safety in chapter 11 proceedings in the Western District of Louisiana Alexandria Division along with affiliates Wi-Jon, Inc. and Ford Holdings. The petition was signed by President Quinon R. Ford and claims up to $10 million in assets and liabilities. Combined, the three firms operate four grocery stories, one shopping center and an office building but all three sought relief over the strain of a $4,400,000.00 note to Centric Federal Credit Union and by the general economic conditions in the grocery business causing a deflation is grocery prices, according to court filings.

Read Ford’s Fine Foods emergency motion here

Real Estate Company Crumbles Under Multiple Lawsuits

After alleging that a Nationstar Mortgage judicial foreclosure was fraudulent, Turning Leaf Homes V LLC filed for bankruptcy, declaring $50 million in liabilities and $10 million in assets. Unsecured claims of $5,100,000.00 and $425,000.00 are owed to Sony Electronics, Inc and Wells Fargo Home Mortgage, respectively. Filed in the District of Oregon, the petition was signed by Manager Tracey Baron who was a defendant in a lawsuit filed by Darrell L. Deem for allegedly refusing to distribute profits from real estate projects. Turning Leaf Homes IV LLC filed for bankruptcy on Feb. 6, 2017.

Read Turning Leaf Homes v Nationstar Mortgage lawsuit here

Read Deem et al v Baron et al here

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