Bankruptcy Settlement of Allen Casey Ensures $5.9 million Sale of Riverfront Land in Downtown

by San Antonio Attorney

A bankruptcy judge approved a settlement deal in the case of entrepreneur Allen Casey that entails the bulk of debt and ensures that a sale plan for the riverfront land in downtown will happen.

U.S. Bankruptcy Judge Shelley Rucker explained the deal resolves a large amount of money involved in the case as well as allows the sale of 6.6 acres of property around Manufacturers Road to possibly be closed at the price of $5.9 million.

A certain company in North Carolina is interested to purchase the riverfront tracts.  Casey had plans to develop the area but the project did not come to pass.

Jerrold Farinash, the bankruptcy trustee in the case, revealed that North Carolina-based CW Development Co. wants the building’s ground-floor space and either condominiums or apartments on upper levels.  According to him, a transaction could finalize next year.

Farinash, who is the key person in the realization of the settlement deal, said creditors will be covered by the proceeds of the sale.

According to him, full claims which were not repetitive or barred were estimated at $9 million.

The agreement includes a total of $3.5 million payment to Casey’s spouse and family members.  Their original claim was $5.59 million.

A group of backers in the project will get around $675,000.  Their original claim was $1.4 million.

Attorney David Moss will get around $70,000 from his $114,000 claim.

Farinash considers the settlement deal as fair.

In his testimony at a hearing, he said reaching a settlement deal was necessary because finding another resolution will likely take years to pass through the bankruptcy court system.  In that period of time, the property could devaluate, the trustee explained.

At $898,000 per acre, that worth makes it one of the priciest lands ever bought in the city of Chattanooga if the agreement with CW Development happens, according to reports.

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