First of August Chapter 7 Round-Up
August kicks off with some businesses liquidating thier property as a result of their Chapter 7 bankruptcy cases.
The Roanoke Times reports that the city’s historic Patrick Henry Hotel will be auctioned. The downtown hotel was owned by real estate group Affirmative Equities Co. That group does not have the cash on hand needed to make payroll for the hotel, plus it needs cash to pay off debts that could total as much as $100 million.
Because of its location, the city of Roanoke is hoping that a responsible owner takes the reigns of a property that could sell for $3 million.
In Las Vegas, yet another development company is calling it quits after bills got too high and income too low. Leading Investments recently filed chapter 7 bankruptcy, and could lose their office building as well as land holdings. Attorneys and the courts are still trying to determine the assets of the company, and how creditors might be covered.
Bankruptcy Update (8-6-2009): The Patrick Henry Hotel sold at auction for $2 million. The city will receive more than $100,000 in unpaid real estate taxes in the sale.