Stanbrough bankruptcy should be dismissed, court officer says
A plan to reorganize finances and retain control of the Keck City Center is unworkable and the building owner’s bankruptcy case should be dismissed, the U.S. trustee for federal bankruptcy court in Des Moines said in a court document filed Monday.
In an unusual move, the trustee joined a motion by Regions Bank to dismiss the effort by Dan Stanbrough LC to reorganize its finances and emerge from bankruptcy over the next 10 years.
Developer Dan Stanbrough controls the company. Under the reorganization plan, rent payments from another Stanbrough company would be used to pay some debts, including more than $500,000 in property taxes. Assistant U.S. Trustee James Snyder said in court documents filed Monday that the plan cannot be confirmed, in part because Keck City Center continues to experience a decline in revenue. Snyder filed the document on behalf of U.S. Trustee Habbo Fokkena.
A hearing on Regions’ motion to dismiss the entire case is scheduled for Friday.