Living large. Lexus SUV.
Tag Archives: Bankruptcy
Mayoral Candidate Nick Smith Files Bankruptcy
From the Messy Mayor Candidate. Looks like the Smith himself is not very balanced budget wise.
Fiscal Sustainability
The City is in good financial health. We have over ten million dollars in reserves and are meeting the reserve policy we set many years ago. We have strong tax revenues which will increase due to new hotel taxes. I believe we must be wise as to our expenditures and use of funds. As Mayor, I’m determined to continue to have a balanced budget and strong reserves.
Lighthouse Lodge Fails To Pay $231,602 In Taxes
Hasn’t made a mortgage payment since March ’09?
According to bankruptcy documents filed Dec. 15, Lighthouse Lodge LLC, employed 35 workers and in the last fiscal year had $3.2 million in gross revenues. It owed about $8.7 million on a to Orix Capital Markets, had $291,000 in “priority” unsecured debt and $5.7 million in other debt, owed to more than 175 suppliers and other vendors. Court records show the property was valued at $18.5 million and the company had $213,000 in cash.
The owners apparently stopped making payments on the mortgage sometime before March 2009, when Orix declared the loan in default. U.S. Bankruptcy Judge Stephen Johnson ruled Dec. 28 the inn should be sold to pay off creditors.
Talking Bankruptcy Again
Talk of municipal bankruptcy has been in the air since U.S. Bankruptcy Judge Michael McManus ruled last month that the city of Vallejo, which filed for Chapter 9 bankruptcy protection in May 2008, has the authority to void its existing union contracts.
The judge contended that Congress did not extend the same projection to public employees that it did to those working in the private sector under Chapter 11 bankruptcy rules.
Cities, McManus said, have broader authority to break existing union agreements than private companies.