In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides insight into the bankruptcy proceedings of Windmill Reserve Corp.
Article Link: https://www.bizjournals.com/southflorida/blog/morning-edition/2016/08/owner-of-homesites-in-wealthy-city-files-chapter.html
Summary
Windmill Reserve Corp., associated with the estate of the late Victor Posner, filed for Chapter 11 bankruptcy, listing $15.5 million in assets against $42.9 million in liabilities. The company, also known as the Estates of Swan Lake, is responsible for undeveloped homesites in the affluent city of Weston. The bankruptcy filing is part of the efforts to manage Posner’s estate, which has been under scrutiny since his death in 2002 due to various legal and financial complications. The largest creditor is a pension plan owed $35.25 million, with other significant debts including money owed to Posner’s daughter and unpaid property taxes. Adam Stein-Sapir comments that the sale of Windmill Reserve’s assets will prioritize repaying the pension plan and taxes, followed by other creditors in accordance with the bankruptcy code.
- The company filed Chapter 11 to facilitate asset sales and maximize creditor repayment.
- The estate of Victor Posner, including Windmill Reserve Corp., faces significant pension-related liabilities.
- Adam Stein-Sapir notes that proceeds from asset sales will first address pension and tax debts.
Q&A
What happens to creditors in a bankruptcy case like Windmill Reserve Corp.’s?
Creditors are typically repaid according to the priority established by the bankruptcy code. In this case, the pension plan and tax authorities will be paid first, and if funds remain, other creditors will receive a portion of what they are owed. For more information on how creditors should proceed when a customer files for bankruptcy, they can visit Pioneer Funding’s guide for creditors.
How does selling bankruptcy claims benefit creditors?
Selling bankruptcy claims allows creditors to receive immediate cash instead of waiting for the conclusion of lengthy bankruptcy proceedings, which may result in little to no repayment. For details on selling bankruptcy claims, creditors can refer to Pioneer Funding’s guide on selling bankruptcy claims.
What are the risks involved in selling bankruptcy claims?
Selling bankruptcy claims involves the risk of receiving less than the full value of the claim, but it eliminates the uncertainty and delay of bankruptcy proceedings. Creditors considering this option should assess the risks and benefits, which are detailed in Pioneer Funding’s overview of the risks in selling and buying bankruptcy claims.
