|ForeclosureDaily update ⋅ June 20, 2021|
|Ohio foreclosures on the rise as Stark County sees roller coasterCanton RepositoryForeclosure starts jumped in Columbus and other Ohio cities during May, raising fears of a wave of foreclosures after moratoriums lift in two weeks.Flag as irrelevant|
|Foreclosure starts in Ohio made the highest jump in the nation in May. Is your house at risk?Canton RepositoryA foreclosure moratorium on federally backed loans expires June 30 and some experts are concern a surge of foreclosures are on the horizon.Flag as irrelevant|
|Notice of ForeclosureDothan EagleL3487 NOTICE OF MORTGAGE FORECLOSURE Default being made in the conditions of that certain mortgage executed by CONTINENTAL CINEMA …Flag as irrelevant|
|Struggling New York Homeowners Can Seek Free Help Before ForeclosureMoratorium EndsWAERHousing experts are concerned that New York could soon experience a home foreclosure crisis. Federal and state moratoriums are currently set to …Flag as irrelevant|
|In the courts:The ReviewDavid and Sheri Maley, et al., foreclosure sought for property on U.S. Route 30, Minerva. Christopher John Cianni, Wellsville, vs. Ailiawyna Raquel …Flag as irrelevant|
|At the end of the moratorium, more than 8 million households will face foreclosure or expulsionTexas News TodayMost homeowners at risk of foreclosure are either low-income or colored families, researchers said in the 2021 National Housing Report. Congress …Flag as irrelevant|
|Amsterdam to perform soil testing at former gas stationThe RecorderThe city apparently foreclosed on the property a decade ago, but local … The city initiated foreclosureproceedings on the property in May 2009 and a …Flag as irrelevant|
|Legal NoticesThe Altamont EnterpriseSending a payment to your mortgage company will not stop this foreclosure … If you fail to respond to the summons and complaint in this foreclosure …Flag as irrelevant|
|With moratorium ending, more than 8 million households face foreclosure or eviction – FlipboardFlipboardWith moratorium ending, more than 8 million households face foreclosure or eviction … Even as the nation rebounds from the coronavirus pandemic, …Flag as irrelevant|
|‘House from hell’ listing gets multiple offers to buy – at $590KWCAXThe seller was originally going to let it go into foreclosure, but suddenly the housing market got so hot that almost anything is selling. Advertisement.Flag as irrelevant|
|Crystal Square building is worthlessCitrus County ChronicleThe current owners purchased the property for $1.5 million through a foreclosure sale in 2013. They have paid the property taxes every year to protect …Flag as irrelevant|
|Millions Fear Eviction as U.S. Housing Crisis Worsens | Hamodia.comhttp://hamodia.comMore than 4 million people say they fear being evicted or foreclosed upon in the coming months, just as two studies released Wednesday found that …Flag as irrelevant|
|Foreclosures On Primary Residence Soared 84% In The First QuarterMo’ TimesThe number of foreclosures on habitual homes soared 84.1%, to 3,207, during the first quarter of the year compared to the same period of 2020, …Flag as irrelevant|
|Chicago Flats Initiative Aims to Preserve Affordable Multifamily HousingWTTW News“After the recession, we were hit hard with the foreclosure crisis. And on the east side of the park of Garfield Park, we’re seeing those 2-to-4 flats being …Flag as irrelevant|
|Putnam County Court Records-Lima NewsOhio News TimeForeclosure ($ 18,099.29). Danagibrin, Columbus, and Spencer Gibrin, Ottawa. Dissolution of marriage without children. Donald R. Vanda Duck, Ottawa, …Flag as irrelevant|
|Mentor COVID-19 Mortgage Payment Relief AvailablePatch.comFHA’s foreclosure and eviction moratorium is in effect through June 30, 2021. If you’re behind on your mortgage payments and occupy your property, …Flag as irrelevant|
|Georgia soon to debut $354 million emergency mortgage assistance programSaportaReportIn August, Georgia officials are expected to roll out a massive program aimed at helping homeowners avoid foreclosure. The $354 million program, …Flag as irrelevant|
|Fitch Assigns Expected Ratings to the First RMBS Transaction Analyzed out of EcuadorFitch RatingsAssumptions reflect portfolio with standard characteristics: Fitch has defined a weighted average foreclosurefrequency (WAFF) of 17.0% and a WA …Flag as irrelevant|
|Millions fear eviction as US housing crisis worsensTraverse City Record EagleNEW YORK (AP) — More than 4 million people say they fear being evicted or foreclosed upon in the coming months, just as two studies released this …Flag as irrelevant|
|House ‘from hell’ on market for £430k as estate agent warns ‘don’t open freezer’Mirror.co.ukBut with the end of foreclosure protection approaching, the housing market is surging, explained Foster. “If there was ever a time that we could throw …Flag as irrelevant|
|The Buzz: Nearly 20 years later, here’s the latest on former Shasta Paper mill in AndersonRedding Record SearchlightThe paper mill property sold at a foreclosure sale auction in 2004 for $500,000 to Winnemucca Trading Company Limited. But little has changed at the …Flag as irrelevant|
|WATCH: CSN, South Fort Myers, Lehigh, Gulf Coast, ECS, Lely compete at 2021 Summer SlamThe News-PressIn the Know: Serengeti development in Alva underway with new management group after going through foreclosure. RC racing popularity grows in …Flag as irrelevant|
|FFIEC Releases 2020 Data on Mortgage LendingAppraisal BuzzA bevy of loss mitigation waterfalls, forbearance safety nets and an abundance of equity gave Americans a fighting chance when the foreclosure crisis …Flag as irrelevant|
|Juneteenth Reflections: Slavery, Reparations + Family HistoryYahoo News… 1838 to save Georgetown University from foreclosure and also explores current efforts by student activists at the University to provide reparations for …Flag as irrelevant|
|Resorts World is a rare finished project on north StripLas Vegas Review-Journal… reacquired the property early this year through a process that lets people avoid foreclosure, with no word on when construction would resume.Flag as irrelevant|
|Claiborne Habitat – ‘a hand up, not a hand out’Claiborne ProgressThey must be able to pay the monthly mortgage on a 20 year interest free loan. The applicant must have not gone into bankruptcy or foreclosure on a …Flag as irrelevant|
|Re: Weller, David-NOTICE OF TRUSTEE’S SALETacoma Daily NewsThe default(s) for which this foreclosure is made is/are as follows: Failure to pay when due the following amounts which are now in arrears: $74,757.88 …Flag as irrelevant|
|Sell Houses Quick For Cash With OnPoint Home Buyers To Avoid Long DelaysDigital JournalOr it could be down to financial problems including a person facing foreclosure, or those that need urgent financial assistance. No matter why a person …Flag as irrelevant|
|Lawyer And Policy Analyst Matt Bruenig Claims Barack Obama Destroyed Black WealthMoguldomWhat’s more, Obama had the power — money, legislative tools, and legal leverage — to sharply ameliorate the foreclosure crisis. He chose not to use …Flag as irrelevant|
|A Stimulus Check for Homeowners? Here’s Joe Biden’s Big Plan.The National Interest OnlineEligible homeowners, if they qualify, will receive federal funds to pay their loans, maintain utility services, and avoid foreclosure. The law prioritizes …Flag as irrelevant|
|12 MIGHTY ORPHANS – ReviewWe Are Movie Geeks… with the one-two punch of that and the Dust Bowl’s extreme drought, a blow that sent many off to California, after losing their farms to foreclosure.Flag as irrelevant|
|‘You can feel the smell’: Decrepit house full of graffiti attracting offers over $800000NEWS.com.auThe owner of the property, Suzy Meyers, was unable to pay the mortgage and faced foreclosure. An insurance claim to fix up the house’s internal …Flag as irrelevant|
Category: Bankruptcy News
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Lionel Sawyer law firm files bankruptcy owing $3.37 million
Summary of the Article
LAS VEGAS — The historic Lionel Sawyer & Collins law firm, which went out of business at the beginning of the year, filed for Chapter 7 bankruptcy …
LAS VEGAS — The historic Lionel Sawyer & Collins law firm, which went out of business at the beginning of the year, filed for Chapter 7 bankruptcy liquidation at the end of January, owing creditors more than $3.37 million.
The law firm, once considered the state’s largest legal house, said in a voluntary filing with the U.S. Bankruptcy Court in Las Vegas that it had assets of $931,626 in personal property.
The only secured creditor, according to the filing, was Western Alliance Bank, which is owed $2.86 million.
Lionel Sawyer & Collins was founded 48 years ago by attorney Sam Lionel and former Nevada Gov. Grant Sawyer. It was the first Las Vegas law firm to open an office in Reno and became a statewide powerhouse.
The politically connected firm was at the forefront of many major gaming changes in Nevada and represented a who’s who of the casino industry.
But as gaming exploded across the U.S., starting in the 1990s, Lionel Sawyer began to show cracks. The gaming practice remained too concentrated on Nevada. The firm’s lawyer roster whittled to about 35 after being the biggest in the state with more than 50 in Las Vegas, Reno and Carson City.
During 2014, the firm had lost many of its partners and associates to other law firms and businesses.
On New Year’s Day, nearly 20 of the firm’s attorneys in Las Vegas and Reno joined the Fennemore Craig law firm.
first published: 2015-02-03 11:03:45
Caesars asks judge to ‘suspend’ Delaware bankruptcy filing, hires new AML chief
Summary of the Article
Casino operator Caesars Entertainment has asked an Illinois judge to “suspend” an involuntary bankruptcy petition filed by disgruntled junior creditors …
Posted on Feb 3, 2015 in Online | 0 comments
By Peter Amsel
February 3, 2015
Casino operator Caesars Entertainment has asked an Illinois judge to “suspend” an involuntary bankruptcy petition filed by disgruntled junior creditors. Caesars is attempting to thwart these creditors from disrupting the planned reorganization of its heavily indebted main unit, Caesars Entertainment Operating Co. (CEOC).
The junior creditors filed in Delaware on Jan. 12 and Caesars made its own bankruptcy filing in Chicago three days later. Last week, US Bankruptcy Judge Kevin Gross ruled that Chicago was the appropriate venue to handle the proceedings. However, Gross declined to rule on the official start date of the bankruptcy, which has ramifications for whether junior creditors can challenge certain financial sweeteners Caesars offered senior creditors for signing on to its reorganization plan.
CEOC is struggling under the weight of around $18.4b in debt incurred when Caesars’ hedge fund owners took the company private in 2008. Caesars has proposed reforming CEOC as a real estate investment trust, a plan that has won the approval of a majority of senior creditors. US Bankruptcy Judge A. Benjamin Goldgar in Chicago has set a Feb. 11 hearing to consider Caesars’ request to suspend the Delaware filing.
Caesars also announced it had “potentially” agreed to allow an independent examiner to consider the legality of Caesars’ controversial pre-bankruptcy asset transfers. Junior creditors have accused Caesars of ‘looting’ CEOC of most of its value by transferring profitable assets – including the company’s interactive division – to other Caesars’ spinoffs (and out of creditors’ reach). Last month, a federal judge described these transfers as an “impermissible” violation of the federal Trust Indenture Act of 1939.
In a filing on Monday, Caesars claimed that any examination of its asset transfers would determine that they were fairly done. However, Caesars said the asset transfers would first be thoroughly investigated by the official creditors’ committee. As such, Caesars asked the court to give CEOC and creditors the opportunity to structure the scope of such an examination.
CAESARS HIRE NEW ANTI-MONEY LAUNDERING WATCHDOG
Finally, Casears announced it had hired a new anti-money laundering (AML) compliance chief. In a statement to Reuters, Caesars announced it had hired Benjamin Floyd as its new senior VP for AML compliance. Floyd, who began his new job in January, formerly held a similar position with Wal-Mart.
In October 2013, Caesars announced it was under investigation by US federal agencies over potential money laundering at Caesars Palace in Las Vegas. A source told Reuters that Caesars’ decision to go outside the company for an AML hire suggests an attempt to mitigate potential civil or criminal penalties that may result from the Caesars Palace investigation, which remains ongoing.
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has taken a growing interest in the casino industry over the past few years, most recently warning Nevada sportsbooks to monitor transactions for certain ‘red flags.’ FinCEN director Jennifer Shasky Calvery has previously scolded casino operators for not living up to their obligations as “complex financial institutions.”
Related posts:Judge okays Illinois as venue for Caesars Entertainment bankruptcy hearingJudge rules Illinois as venue for bankruptcy case of casino giant Caesars EntertainmentCreditors try to push Caesars unit into bankruptcy ahead of its own filing expected this weekMain unit of casinos giant Caesars files for bankruptcy
first published: 2015-02-03 03:41:50
Royalty Partners files for Chapter 11 bankruptcy
Summary of the Article
Royalty Partners LLC filed for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court Southern District of Texas in Victoria. Houston-based …
Royalty Partners LLC filed for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court Southern District of Texas in Victoria. Houston-based Royalty Partners LLC, a company with significant holdings in the Eagle Ford Shale, filed for Chapter 11 bankruptcy protection in Victoria last week.
first published: 2015-02-03 03:40:02
Bankruptcy trustee files status report on TelexFree
Summary of the Article
The Chapter 11 Trustee in charge of steering TelexFREE through bankruptcy documented his efforts to work through the embattled company’s “chaotic …
By Scott O’Connell
Daily News Staff
Posted Feb. 3, 2015 at 9:46 PM
first published: 2015-02-03 02:48:45
Copenship Files for Bankruptcy
Summary of the Article
Privately-owned shipping company Copenship has filed for bankruptcy in Copenhagen after losses in the dry bulk market, its Chief Executive Michael …
By MarEx 2015-02-04 14:54:01
Privately-owned shipping company Copenship has filed for bankruptcy in Copenhagen after losses in the dry bulk market, its Chief Executive Michael Fenger told Reuters.
Copenship had been operating over 50 chartered small-sized dry-bulk vessels carrying goods such as grain, iron ore and timber.
“We have done what we could to raise the funds to save the company, but we have reached a point where there is not more to do,” Michael Fenger wrote in a text message to Reuters on Wednesday.
The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell to its lowest level in nearly three decades on Tuesday, hurt by weaker rates across all four vessel segments.
On Wednesday the index stood at 569, close to the historic low level of 554 set in July 1986.
“First of all, we have found ourselves in an extremely bad dry cargo market. Secondly, there are several counterparties that have caused us losses, and then thirdly there are different insurance cases that could hit us,” Fenger wrote.
Insolvency administrator Per Astrup Madsen from Copenhagen law firm Lett said the vessels will be handed back to owners.
“Copenship expected to turn around the business in 2014 but the dry bulk freight rates continued the falling trend,” Astrup Madsen said.
One of the world’s leading dry bulk shipping companies, Copenhagen-based D/S Norden, posted a net loss of $326 million for 2012 and 2013 combined, and said in December it expects a full-year 2014 EBITDA loss of between $290 million and $230 million.
Shipping analyst Peter Sand at shipping organisation Bimco said 2015 looks set to be dull on the demand side, whereas the supply side is likely to provide the same amount of new capacity as in 2014. “Such a development will not improve the fundamental market balance,” he wrote in a note.
By Ole Mikkelsen (C) Reuters 2015.
first published: 2015-02-03 15:56:15
What mediation means for the archdiocese, insurers and victims
Summary of the Article
The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 bankruptcy on Jan. 16, a step that allows the church to operate as usual while …
The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 bankruptcy on Jan. 16, a step that allows the church to operate as usual while reorganizing its operations and paying its creditors.
• The archdiocese has filed for bankruptcy: Now what?
Federal bankruptcy Judge Robert Kressel, who is overseeing the process, has ordered the archdiocese and its creditors into mediation, where the parties will attempt to negotiate a settlement to reorganize the archdiocese and compensate victims of clergy sexual abuses.
Compromise is critical to mediation, as parties try to work toward a settlement that most — or many — can live with.
If mediation is successful, the archdiocese and its creditors can avoid moving the process to a federal bankruptcy courtroom — where the process can be more contentious than negotiation.
Explore the full investigationClergy abuse, cover-up and crisis in the Twin Cities Catholic church
“Litigation is war,” said Roger Haydock, professor at the William Mitchell School of Law in St. Paul. “It’s civil war, but it’s war. To that extent, you try to get a peace treaty.”
Mediation provides the opportunity for that peace treaty. Haydock says no party gets everything it wants in mediation, but it provides an opportunity to gain some control over the outcome.
How common is it?
Mediation has played a role in most, if not all, church Chapter 11 bankruptcy filings, with varying degrees of success. It didn’t resolve the Archdiocese of Milwaukee’s bankruptcy, which is entering its fifth year.
But mediation was key to making the Diocese of Helena, Mont.’s bankruptcy move forward smoothly.
• Earlier: Archdiocese weighs bankruptcy, but what would it mean?
Ford Elsaesser, the Helena diocese’s bankruptcy attorney, said the church and its creditors were basically under mediation even before the diocese filed for Chapter 11 reorganization protection.
“The financial condition of the Helena diocese was not good,” Elseasser said. “Everyone worked together to maximize what could be brought to the table, including settlements with the insurance carriers.”
How do insurers fit into the picture?
Insurance coverage is always a major factor in church bankruptcies. Carriers claim church officials voided their dioceses’ policies when they turned a blind eye toward clergy sexual abuse.
In mediation, though, the Twin Cities archdiocese and its insurers might determine that it’s better to compromise than fight it out in court, Elsaesser said.
An insurer could determine it has no legal obligation to provide coverage, but might decide to contribute money to a settlement, rather than spend money fighting a claim.
The archdiocese, for its part, could decide to settle for less insurance money than it figures it is owed, rather than risk getting little or nothing in court.
“It’s hopefully more productive to grind that out through the mediation process and come to an agreed number rather than rolling the dice in the courtroom,” Elsaesser said.
Who’s in charge?
Former federal Judge Arthur Boylan is serving as mediator in the Archdiocese of St. Paul and Minneapolis’ bankruptcy case.
Boylan has settled thousands of cases through mediation, including the 2011 labor dispute between the National Football League and its players’ union.
• Earlier: Judge who brokered NFL deal to mediate Southwest light rail fight
The NFL’s mediation required 26 sessions over the course of more than 100 days. Boylan’s successful mediation of the dispute ended that season’s lockout.
In this case, Boylan will work with the parties involved toward some sort of consensus. That requires a lot of listening, so Boylan can best understand the groups involved — and ensure they feel fairly treated.
Boylan’s role is to guide the process, as a neutral player, to an equitable solution.
What might get in the way?
“Egos are on the line, people’s reputations,” said Guy Burgess, co-director of the University of Colorado’s Conflict Information Consortium.
That makes Boylan’s job as a neutral party especially difficult.
“Some folks go into this to get all they possibly can get. Other folks might be more inclined to be conciliatory,” Burgess said. “So, there’s a lot of very difficult interpersonal issues that the mediator and the parties are likely to have to struggle with.”
Will the old alliances remain intact?
A bankruptcy filing tests the relationships of the parties involved and their ability to work together.
“Some relationships improve, where the parties find common ground. Others can deteriorate if the parties are or appear to be intransigent on critical issues or if … they’re perceived to to be hindering the resolution of the case,” said Howard Levine, who represented the Archdiocese of Portland, Ore., in its bankruptcy.
Bankruptcies can change relationships. For instance, groups that were pitted against each other before a bankruptcy — such as clergy abuse victims and the archdiocese — might find themselves allied against insurance companies on some issues in a mediation.
Even within the different groups involved in the bankruptcy, there could be internal divisions and squabbles.
“Among the 20 or so insurance companies, there’s probably 20 different opinions about what to do,” said Christopher Soper, a bankruptcy attorney and University of Minnesota law professor.
What’s the benefit of attempting mediation?
The mediation process is private and confidential, unlike a case that goes before a judge.
That promise of privacy invites candor — and encourages the parties involved to consider making concessions they might not otherwise make in open court.
“In mediation, the parties themselves get to say how much they’re willing to give up — how much they’re willing take, if you would, on either side of the table — and come to some resolution,” said Christine Kubes, a construction attorney and mediator.
What about compensating victims?
Generally in a bankruptcy, there’s not much dispute about individual abuse claims.
After it’s determined how much money is available to compensate victims, a court-appointed adjudicator will decide how that money should be allocated to individual victims, based on the severity of abuse suffered. Settlements also typically include an apology to victims.
Insurers and parishes where sex abuse occurred will likely try to make sure that any settlement with victims doesn’t leave the door open to abuse lawsuits against individual parishes.
Insurers and parishes may be on the same page in seeking, through the bankruptcy court, some sort of legal protection against future abuse claims.
first published: 2015-02-03 10:07:30
Trump Taj Mahal Union Files Charges
Summary of the Article
Unlike earlier Trump casino bankruptcies, the Chapter 11 case that began in September 2014 has been shaped by continuing labor strife, with …
Atlantic City casino workers are keeping the pressure on Trump Entertainment Resorts as the battered gambling companyforges ahead with a bid to survive its bankruptcy intact.
New allegations of unfairness were called to the attention of federal labor regulators by the union that representsmore than 1,100 workers at Trump Taj Mahal, the last casino standing of the former Atlantic City boardwalk casino empireof Donald Trump.
Unite Here Local 54 announced Tuesday it has filed 27 unfair-labor-practice charges over incidents at the Trump TajMahal casino, involving alleged threats and discrimination against workers for union activity.
A spokeswoman and a lawyer for Trump Entertainment didn’t respond Tuesday to inquiries about the labor unfairnessaccusations, which follow a series of demonstrations accusing Trump Entertainment and Carl Icahn, the billionaire poisedto take over company, of unfairness.
Unlike earlier Trump casino bankruptcies, the Chapter 11 case that began in September 2014 has been shaped bycontinuing labor strife, with complaints of unfairness from both sides.
The union, the company and the secured lender almost reached an accord in December, but the deal fell apart.
Mr. Trump, who hasn’t been involved in management of the gambling company for seven years, said Tuesday he wassurprised at the level of discord at the company.
“People that work there are people that I know. They are really good people,” Mr. Trump said. “I am surprised thatthey can’t get it going. It’s to everyone’s benefit to come together. I am very surprised that they can’t make a deal.”
The Taj Mahal is one of a shrinking number of gambling halls on the Atlantic City boardwalk, which has suffered fromcompetition from neighboring states.
The complaints to the National Labor Relations Board come as Trump Entertainment begins the balloting process for aChapter 11 exit plan that would transform Mr. Icahn the lender into Mr. Icahn the owner.
The NLRB charges follow a union-led demonstration in front of Mr. Icahn’s New York offices, and are geared to send Mr.Icahn a message, according to a press release from the union. Unite Here has engaged in a series of demonstrations overthe loss of health-care and pension benefits at the Trump Taj Mahal.
The crucial showdown, however, may not be on streets of Atlantic City or New York. A federal appeals court inPhiladelphia has set a March hearing date for the union’s challenge to a decision that allowed Trump Entertainment tostrip employees of their health care and pension benefits.
The company says it needs to get out from under the union contract to survive. Unite Here, backed by the NationalLabor Relations Board, says the bankruptcy court overstepped the law when it let Trump Entertainment walk away from itsobligations to workers.
“What is reprehensible is that they’re using union dues and doing everything they can to win this appeal. If they win,the only thing they win is that it will go into a Chapter 7 bankruptcy and the employees they claim to protect will allbe out of work,” Mr. Icahn said.
Last year, the union filed an unfair-labor-practice charge with the National Labor Relations Board accusing the Icahnlending group and Trump Entertainment of failure to bargain in good faith. In Chapter 11 plan documents, TrumpEntertainment said that charge was invalidated by the bankruptcy court ruling on benefits.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Goto )
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Subscribe to WSJ: http://online.wsj.com?mod=djnwires(END) Dow Jones Newswires 02-03-151645ET Copyright (c) 2015 Dow Jones & Company, Inc.This article appears in: News HeadlinesReferenced Stocks: TRMYQ
first published: 2015-02-02 21:45:00
Jackson Brewery bar, sued for noise, files for bankruptcy
Summary of the Article
The owners of Jackson Brewery Bistro Bar filed for bankruptcy Sunday (Feb. 1), a day before they were scheduled to appear in court to address claims …
The owners of Jackson Brewery Bistro Bar filed for bankruptcy Sunday (Feb. 1), a day before they were scheduled to appear in court to address claims that loud music from their nightclub is damaging their neighbors’ quality of life.
Marlene Sheely, who owns the business with her son, David Sheely, said they tried to work out an agreement with the residents in the days leading up to the hearing that would allow them to remain open as a restaurant and special events venue. But negotiations broke down, leaving them no choice but to file for Chapter 11 bankruptcy, she said.
“We have to reorganize and find a business plan where we can make enough income to pay our bills and stay viable,” Sheely said. “We can do it if we can have corporate events that are generally no later than 10 p.m. or 11 p.m. But they’re trying to make it so we basically can’t have any music or people past 9 p.m.”
Bill Everitt, a resident of Jackson Brewery, said, “As a unit owner, I believe both parties have been and will continue to work in good faith to reach a settlement agreement.”
The Jackson Brewery Bistro occupies the first two floors on the northern side of the Jackson Brewery building on Decatur Street in the French Quarter. It opened in 2011, operating a restaurant on the first floor and a bar and nightclub on the second floor until 2013, when the New Jax Condominiums Association filed for a preliminary injunction in Civil District Court. The homeowners said that noise from the club was too loud and asked the court to place limits on the bar’s volume of music.
Judge Paulette Irons granted the residents the emergency injunction and, after several contempt of court claims, ordered the club not to exceed 60 decibels. Irons was to consider this week whether to make the injunction permanent, but the case was stayed and moved to federal court after the Sheelys filed for bankruptcy.
Marlene Sheely said they had no choice after being forced to abide by the 60-decibel limit, which is the equivalent of a conversation, background music or the sound of an air-conditioner from 100 feet away, according to charts produced by Purdue University and other sources.
The Sheelys said they ceased operating the nightclub side of their business that occupied nearly 9,000 square feet of their space and canceled all their corporate events through March, cutting into the profit they were set to make during Mardi Gras. They were also hit with an $181,000 legal bill from the homeowner’s association that is due Feb. 15 and are still on the hook for their mortgage payments and $5,909 in monthly condominium fees.
Sheely said if the residents would agree to lift the 60-decibel limit and allow the business to host corporate events, the Jackson Brewery Bistro can succeed in a prime location that has already seen a number of businesses fail, including Planet Hollywood, the Mardi Gras Club and Ripley’s Believe It or Not Museum.
first published: 2015-02-02 20:26:15
Chapter 11 Bankruptcy News: Hilo Hattie files for Ch. 11 bankruptcy a second time, owes more than $10M
Summary of the Article
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