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Minor Submits Carter's Grove Reorganization PlanBy Desiree Parker Tuesday, June 21, 2011 Halsey Minor has filed the reorganization plan for his Carter’s Grove bankruptcy case, and if it’s accepted by creditors it will allow Minor to keep his equity in the property and pay his debt to Colonial Williamsburg over three years. The plan says Minor’s Carter’s Grove LLC, the company dot-com millionaire Minor formed to purchase the historic property from CW in 2007, is now solvent, which means it can pay its debts. It structures repayment to so that Minor will pay off debt to Colonial Williamsburg within three years, and will pay quarterly interest payments. Other creditors will be paid either in installments or in a lump sum by a date not yet specified, if the reorganization plan is approved. Minor's Carter's Grove entity owes more than $12.5 million to various creditors, including CW.Minor structured the plan so the property cannot be sold by foreclosure if there is future default, which is what nearly happened in January when he initially defaulted on the payments to CW. The creditors need to vote on whether to accept the plan by a date that also isn’t yet specified. If they decide to reject the plan, Minor will need to come up with a new plan or liquidate Carter’s Grove LLC’s assets and pay off the debt. The plan also allows Minor to file claims against CW on June 24 unless a settlement is reached. He has alleged in previous court documents that CW failed to disclose damage to the property prior to selling it; this claim is currently under investigation. Minor says he will move forward with his claims against CW on June 24 unless a settlement is reached. The documents mention a separate claim of “potential trademark infringement” may also be alleged by Minor, though there are no details provided. Minor was scheduled to make a settlement offer to CW by the end of last week, but the details of the offer haven’t been disclosed. The threat of possible claims against CW may act as leverage to convince CW to accept the settlement. The reorganization plan documents say Minor’s Carter’s Grove LLC is now solvent, but that hasn’t always been the case. Minor’s assets were frozen in 2010 due to a legal dispute with Southeby’s, and he has been involved in litigation that tied up his cash for several years and helped lead to his Carter’s Grove default, according to earlier court documents. The documents filed last week say that Minor is looking to leverage a new asset in order to make good on his Carter’s Grove debts. Minor recently started marketing a new internet product called Atmosphir.com, which allows users to create virtual worlds online. The website generates revenues from the sale of virtual items. “Atmosphir is quickly growing,” according to the reorganization plan documents, and more than 120,000 virtual worlds have been created on the site since December. Minor owns about 84 percent of the company, and he is now trying to obtain “convertible debt financing secured by the assets of Atmosphir… which will be used to fund payments” toward Carter’s Grove debt. The documents indicate that a recent assessment of Carter’s Grove put the property’s value at $15.8 million, “substantially more” than the $12.5 million in claims against it. “The [reorganization] plan allows creditors to be made whole, while preserving the equity in Carter’s Grove,” the overview of the plan reads. Creditors will get 100 percent of their claims. Minor has been managing the property since the default and has spent nearly $100,000 to do so, according to the documents. All taxes on the property need to be paid as part of the reorganization process; currently Minor owes James City County more than $22,000. It's not the only outstanding tax obligation for Minor: He owes the state of California over $13 million and owes Charlottesville more than $84,000, according to an article on C-Ville.com's website. CW and Minor are due in court on July 7 for a status conference. |
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Comments
2.Minor is NOT solvent as he had to borrow money from his assistant's husband to pay the "small" vendors on his property.
3.Like most of Minors "plans" they are strong on rhetoric and short on details.
4.Trademark infringement means STALL.
5.Where did he come up with the value of $15.8? Didn't he have an appraisal (done by a flunky appraiser) who said it was worth $21M?
6.WHAT A GREAT DEAL FOR THE CREDITORS----th ey are supposed to give up any rights they have to foreclose and be paid vs the "promise" that Minor will take care of it....really?????
7.Atmospir is NOT new....it has been around for five years and is not close to any of the other "virtual" sites.
8.the creditors are all going to be paid 100% because Minor says so.....not a prayer.
Minor and his wife owe over $14M to California. They owe taxes and are in default on every piece of property. Minor Pictures is of almost NO value as it is the only property left in Minor Ventures he hasn't sold. And the idea that the creditors would give up their rights to claim their money is preposterous. Minor has not made good on one agreement yet. He still owes his attorneys, his banks, Merrill Lynch, Sotheby's, and dozens of vendors. There are investigations going on in several states....my goodness,does he really think he can get away with all of this?