Posts Tagged ‘bankruptcy’


bankruptcy1

Next Exit…

Rumor has persisted for many a month now that Mr. K. was knee-deep in bankruptcy proceedings, but no official confirmation was discovered (on PACER) until now.  In response to the threat of a summary judgment against Mr. K. in the State of Ohio v Unmistakably Premier Homes/Stephen Kovack case, lawyers for Mr K filed a last second “Suggestion of Bankruptcy” with the court:

Defendant Stephen M. Kovack, by and through the undersigned, hereby serves notice that he has filed a Chapter 7 Voluntary Bankruptcy Petition on December 20, 2012 in the U.S. Bankruptcy Court, Southern District of Florida.  The case is styled as U.S. Bankruptcy Court, Southern District of Florida, Case #12-40209-AJC.

The proceedings herein and any and all acts, including, but not limited to judicial and administrative proceedings, are automatically stayed pursuant to 11 U.S.C. Section 362 of the Bankruptcy Code.

In the big euchre game of life, it appears the Bankruptcy Code trumps all other civil laws.  Medina County Common Pleas judge, James L. Kimbler, issued  an automatic stay until further notice.

Now that we have an actual case number, we’ll bring you more information as we sift through it, so stay tuned!


Bang! Next Case…

Looks like Mr. K will have to find some other legal loophole to hide in.  As of August 27th, his attempt to file Chapter 11 bankruptcy for his 7972 Ridge Road LLC has been dismissed.  So, as the Notice of Dismissal states:

Creditors have a right to proceed against the debtor or the debtor(s) property according to applicable law.

Meaning, PNC can either sue the pants off Mr K to get their money, or take the property away out right.  What will the next card to fall be?


Perhaps Mr. K should employ Keyrock, the Caveman Attorney…

We’re no legal scholars here at Mistakably Premier.  Legal concepts of motions, notices, and certificate of service frighten and confuse us.  But what we do know, is that things aren’t going so well in the Chapter 11 bankruptcy case of 7972 Ridge Road LLC.  According to court documents, Daniel M. McDermott, the United States Trustee for Region 9, has filed a motion to “convert or dismiss” the case.  Not knowing exactly what that means, we did some research on the matter.  Here’s what we found…

According to the website www.cacb.uscourts.gov, the court can request the case be converted or dismissed “if a debtor is not complying with bankruptcy requirements.”

So why has Daniel M. McDermott asked for a conversion or dismissal?  Apparently it has to do with a July 19th evidentiary hearing where “The Court entered orders from the bench denying the Debtor’s use of cash collateral, denying its motion for turnover, and granting PNC relief from the automatic stay.”  In other words:

PNC – 3, Mr. K – 0

The motion further lists a number of factors, including:

  • Absence of a Reasonable Likelihood of Rehabilitation

It is believed by the court that “without any assets in its control, the Debtor lacks a reasonable likelihood of rehabilitation.”  Ouch!

  • Dismissal in Creditors’ (in this case, PNC) Best Interest

“Because the Debtor lacks unencumbered assets,” asserts the motion, “dismissal is in the best interest of creditors.”  Double Ouch!

Dismissal has Serious Consequences

So, now what?  The motion is set for a hearing on August 14th, so we’ll see which way the court rules.  If we were betting folk, we’d place money against 7972 Ridge Road.  If the case breaks that way, what can Mr. K expect?  The www.cacb.uscourts.gov site further states:

If a bankruptcy case is dismissed at the request of a trustee or creditor, or by the court on its own motion, the debtor may be prohibited from filing another bankruptcy case for 180 days [Bankruptcy Code Section 109(g)] or be required to file a motion to obtain permission to file another bankruptcy case (Bankruptcy Code Section 349).

In other words, Mr. K will find it hard to hide behind bankruptcy law…


Just a bit more info regarding the Bankruptcy Filing by 7972 Ridge Road LLC as posted yesterday.  Mistakably Premier Homes has obtained a copy of the filing as signed by Mr. K himself (check out the pics below).

Also, it looks like the initial hearing is scheduled for July 10th at 10:30 AM at 260 Federal Building in Akron.  We’re assuming it’s open to the public, so if you’re planning on attending, let us know!  We’d love for someone to provide us with the straight dope (and perhaps one of those really bad artist’s courtroom renderings!).


Here at Mistakably Premier, we’ve been watching for any signs of UPH’s impending bankruptcy.  Looks like we’ve been looking in all the wrong places.  Well, that’s not entirely true.  We’ve been on the lookout in PACER, the online Federal repository of court cases, for anything related to Unmistakably Premier Homes.  What we forgot to look for is any of Mr. K’s other holdings, specifically, 7972 Ridge Road LLC.  You may recall that 7972 Ridge Road LLC is the company that is listed as the owner of the UPH as-of-now foreclosed offices on 1392 High Street in Wadsworth.  In any event, 7972 has filed for Chapter 11 reorganization.

So how did we stumble onto this bit of information?  Loyal reader, and UPH victim, Brian (not his real name) sent us the heads up about an article in for the tip regarding the article on Crain’s Cleveland Business online, published today.  It’s an interesting read, the highlights including:

  • UPH is “the target of more than $1.6 million in judgments in Medina and Cuyahoga county common pleas courts. The largest is a $1 million judgment to satisfy a note filed by Fifth Third Bank.” [Ed note:  We think they actually mean PNC (as referenced later in the article).  If that’s the case we brought you this story before Crain’s did!  Pulitzer perhaps?]
  • “The sale [of the 1392 High Street property at Sheriff’s sale] only netted one $990,000 bid, according to the bankruptcy filing.”
  • Liberty Township is hoping to “nab some money that Ohio Attorney General Michael DeWine will make available to help local governments cope with foreclosures,” hoping to “use it to demolish” an unfinished UPH home.

But the most interesting tidbit of them all was this:

The homebuilder also is the subject of a website dubbed “Mistakably Premier Homes” where dozens vent complaints about building quality or alleged nonperformance on home-sale contracts. The site has 45 names on a petition calling on the builder to honor warranties and contracts.

That’s right, our little blog and you, “the dozens”, were mentioned in Northeast Ohio’s leading source for weekly business news, analysis and commentary!  Couple this with our proposed Channel 19 appearance, and it’s like we’re the next Facebook (okay, maybe MySpace…)!

Special thanks to “Brian” for the tip!


NOT the actual sign in front of UPH Offices

I’ve got to hand it to our loyal readers… They’ve been doing most of the heavy lifting while we’ve been hibernating!  Over on our fourms, guest commentator “guest_guest” has pointed us in the direction of the Medina County Sheriff’s Office website which lists all the upcoming properties on the auction block.  One address in particular stood out among the rest: 1392 High Street, Wadsworth.  Why?  That’s the location of UPH’s home office…

“But wait!” you say.  “The listed owner is a 7972 Ridge Road LLC, not UPH.  What gives?”  Good question.  But if you follow the rabbit down the hole, you see that this foreclosure is linked to the Civil Case 11CIV1314, which lists not only 7972 Ridge as a defendant, but also the esteemed Mr K. (plant face firmly in  palm here).  Seems Mr. K. co-signed the loan, and now, PNC Bank is asking for it’s money back – to the tune of $1 Million!

Usually, we’d put a handy-dandy chart up about now to show how Mr K. is tied to 7972 Ridge Road LLC, 1392 High Street, and case number 11CIV1314, but we’re pretty sure our readers are smart enough to get it.


We first found the rumor that Unimistakably Premier Homes had gone bankrupt a few days ago.  Since that time, we’ve done some more checking, including a search of pacer.comPublic Access to Court Electronic Records – which enables anyone to search court records online.  We did find a lawsuit filed against UPH for violation of theFair Labor Standards Act (opened Feb 4th, 2011), which we’ll dig into later.  But, there are zero filings for bankruptcy by UPH.

PACER Search Results for UPH Bankruptcy

We’ll keep an eye out for any developments and pass it on as soon as news breaks!


Remember Circuit City (where “service is was state of the art”)?  Yeah, it’s been awhile since I’ve heard of them too.  Back in the day, they used to be a major rival of Best Buy.  But then things started going south, and, eventually, they ran out of capital, and shut their doors forever (although CircutCity.com is still around, but it’s basically a different branding of TigerDirect.com).

Rumor has it that UPH has begun its death spiral.  Apparently, the builder is having some issues securing credit to continue to build homes.  It may be just the state of the economy, but things aren’t looking so good for our favorite home builder!  Could bankruptcy be next?

UPDATE: Type the following into Google – “unmistakably premier homes bankruptcy” – and you get a number of returns, including a link to the “Building With Ryan” blog, which states:

Glad we picked the right builder!!

Unmistakably Premier Homes filed bankruptcy here in Ohio. I’m not sure if they build outside of this area. My development has a few sites that belong to Premier even though it’s a Ryan development. There’s a house on our street that is less than 1/2 way finished. It’s a Premier home…and it’s been under “construction” since early February.

Not sure of his sources, as I can’t find any filings for bankruptcy on-line.  Perhaps someone with a JD can help?
UPDATE #2:  It appears that post quoted above was taken down by the author.