• Vacant Lots Owned by Gas City to be Auctioned by Bankruptcy Court

    Gas City, LTD is putting five vacant properties up for auction in June 2011. The company filed for Chapter 11 bankruptcy protection in October of 2010.

    The properties going for auction range in size from three acres to more than 46 acres. They are located in Will County, Ill and Montgomery County, Ind.

    Bids are due Wednesday, June 22, and the auction is scheduled for 10:00 a.m. on Friday, June 24.

    The auction is part of the ongoing breakup of Gas City. The company cited more than 1,000 creditors and estimated liabilities of more than $100 million in its bankruptcy filing. Published reports say that the debt totals $365 million.

    The company’s 50 retail sites were auctioned to the highest qualified bidders in April of 2011 for a total of approximately $135 million. According to bankruptcy court records, some of the purchasers are Speedway, TravelCenters of America, 7-Eleven, Inc., and Valero Retail Holdings, Inc.

    Before filing for bankruptcy protection, Gas City was a family-owned and -operated petroleum marketer and convenience store chain with 50 locations located around the United States. Gas City was founded in 1966 with one convenience store by current president William J. McEnery.

    If you are considering filing for bankruptcy and would like to learn more about the process, contact a Chicago bankruptcy attorney for more information.

  • Five Charged in Mortgage Fraud for North Shore Development

    Three partners in a failed North Shore development project, a loan officer, and a title company executive were charged in a federal indictment unsealed on June 5, 2011. The charges allege that the five engaged in a $15.7 million residential mortgage and construction loan fraud scheme to help finance a failed mixed-use commercial development known as the Center of the Northshore.

    The five defendants allegedly caused various lenders and a title company to lose at least $8.45 million. The proceeds from the loan allegedly were used to make interest payments on multiple fraudulent residential mortgages, and to make interest payments on a $26.2 million loan to finance the purchase of 14 acres in Northbrook. The project intended for the project at the intersection of Dundee Road and Skokie Boulevard ultimately fell into foreclosure.

    A federal grand jury returned an 11-count indictment on May 26, 2011. Charges against the defendants include wire fraud, bank fraud and making false statements to influence the action of a bank. The indictment was unsealed only after federal agents arrested four of the five defendants, and is seeking forfeiture totaling almost $10.5 million from all five defendants.

    If you are seeking to learn about your legal options for a short sale or foreclosure, contact a Chicago foreclosure attorney for more information.