Tuesday, June 21, 2011

What Took So Long? Kluge and Moses Finally File For Bankruptcy

Over the weekend, the sign appeared at their last business holding, "Fuel," putting the gas station/cafe up for foreclosure auction on July 14.

But last Thursday, June 14, the beleaguered couple filed for Chapter 7 bankruptcy protection, according to The DP:
  • This places the couple’s assets under protection and under the control of a court-appointed trustee. 
  • The filing indicates the couple’s debts are “primarily business debts.”
  • The bankruptcy petition prevents creditors from continuing lawsuits, garnishing debtors’ assets or even calling the debtors to demand payment.
  • The filings indicate that the couple has between 50 and 100 creditors
  • They owe between $10 million and $50 million in liabilities.
  • The filing indicates the couple has between $1 million and $10 million in assets.
  • There are at least three banks involved in Kluge/Moses proceedings. They include Sonabank, which foreclosed upon the couple’s Vineyard Estate development; Bank of America, which foreclosed on Kluge’s Albemarle House manor home; and Farm Credit Bank, which foreclosed on — and sold in pieces at auction — the couple’s Kluge Estate vineyard and winery.
The DP also describes what happens with any Chapter 7: "According to court officials, debtors must provide the court with schedules of debts, assets and other financial data and attend a meeting of creditors usually held a month or more after the petition is filed. At the conclusion of the court procedure, the debts are “discharged” and the debtors no longer liable for the debt, although the laws regarding that discharge are “complex,” according to the court."

Related:
"Glen Love," the Kluge / Moses Spec House Turned Downsizer, Lost to Foreclosure
Donald Trump Buys Kluge Estate Winery For a Song 
Albemarle House was lost to foreclosure and is now listed at $16M by BofA

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