Plein Update

This past week Jim Carroll had a meeting with Lisa Banen, the attorney for the trustee of the Plein Bankruptcy. Jim sat down with Ms. Banen to discuss the properties that remain in the Plein inventory. Ms. Banen has pulled a title report for each property in the bankruptcy estate. These title reports show any outstanding liens on the properties that have been recorded, and the priority of dates in which the liens were recorded.

Jim brought a list of all of our clients’ claims, and began with the beginning of the alphabet going through the properties one by one with Ms. Banen. What we have found is that because the property values are so low, many of the properties have multiple lien holders on them, but in most cases the properties only have enough equity for the first position lien.

We are setting up another meeting with Ms. Banen in the coming week. This meeting will likely be at least half a day long, and at the meeting we intend to go through the entire list of clients to find out your position on each property. (At the previous meeting, it took about two hours just to get through the first four letters of the alphabet.) Once we have ascertained the position of each lien holder, we will be contacting you individually and letting you know what claim if any you have against the properties, and what your options will be at that time.

If you find that you are a second or third position lien holder and cannot recover from equity in the property, you will be asked to release your lien. Upon signing the release, you will still have a valid claim against the bankruptcy estate, but this claim will be considered unsecured. If you are an unsecured creditor, we will not know how much you may recover if anything until the close of the bankruptcy estate, once all of the properties are sold, abandoned, or transferred.

As always, feel free to contact us with any questions or concerns. We ask that if you plan to inquire about a specific property, however, that you give us time to meet once again with Ms. Banen so we will know exactly where you stand. At that time, we will be contacting each of you either by email, phone, or mail.

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