In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides insight into the complexities of bankruptcy proceedings.
Article Link: https://www.reviewjournal.com/local/local-las-vegas/legal-wrangling-between-tiberti-bishop-gorman-landlord-continues/
Summary
The legal battle between J.A. Tiberti Construction Co. (JATCO) and the landlord of Bishop Gorman High School, Bishop Gorman Development Corp., shows no signs of resolution. JATCO has requested a court-appointed trustee to manage the landlord’s bankruptcy, claiming that the church’s involvement prevents responsible financial decision-making. The landlord, managed by Las Vegas Bishop Joseph Pepe and other notable figures, owes Tiberti nearly $29 million for construction costs and legal fees. The dispute has led to significant legal expenses, with the landlord accruing $1.9 million in new fees since filing for bankruptcy in April. Adam Stein-Sapir commented on the situation, noting the aggressive tactics JATCO is employing to collect its debt, which could threaten the school’s operation.
- Bishop Gorman Development Corp. filed for bankruptcy in April, with JATCO seeking a trustee due to the church’s alleged mismanagement.
- JATCO claims the landlord owes them about $29 million, while the landlord’s bankruptcy exit plan offers less than $10 million.
- Legal fees for the landlord have reached $1.9 million since April, with potential to grow to $4.5 million by June.
Q&A
What are the potential consequences of a trustee being appointed in a bankruptcy case?
When a trustee is appointed in a bankruptcy case, they take control of the debtor’s assets and financial decisions. This can lead to a more impartial and efficient management of the bankruptcy process, potentially maximizing the returns to creditors. However, it can also strip the original management of their decision-making power and influence over the outcome. For more information on bankruptcy proceedings, visit Pioneer Funding LLC.
How does the involvement of a church in a bankruptcy case complicate matters?
The involvement of a church in a bankruptcy case can complicate matters due to potential conflicts of interest and the unique nature of church finances. Churches often have complex structures and relationships with their members and affiliated entities, which can make financial decisions and creditor negotiations more challenging. Additionally, the perception of the church’s role in the community may affect the proceedings and the willingness of parties to pursue aggressive collection tactics.
What are the risks for creditors when a debtor files for bankruptcy?
Creditors face several risks when a debtor files for bankruptcy, including:
- The possibility of receiving only a fraction of the owed amount, as bankruptcy often involves debt restructuring or liquidation.
- The uncertainty of the bankruptcy process, which can be lengthy and complex, delaying potential payments.
- The risk of legal expenses, as participating in bankruptcy proceedings can incur significant costs.
For creditors considering selling their bankruptcy claims to mitigate these risks, it’s important to understand the process and potential outcomes. More information on selling bankruptcy claims can be found here.
