• Bankruptcy Restructuring of North Pier Moving Forward

    Developer Dan McLean has proposed paying a Texas vulture investor approximately 40 cents on the dollar to settle a $39 million mortgage on North Pier Terminal that is in arrears.  The North Pier Terminal is located west of Navy Pier at 401 East Illinois St.

    A chapter 11 bankruptcy petition for the North Pier Terminal was filed in February, days ahead of a scheduled foreclosure sale. Part of the restructuring plan is to keep Mr. McLean on as a consultant with the possibility of his earning fees through the McLean-Massey company, according to documents in the case. Geneva Capital Group, who holds a second mortgage of almost $5.2 millon on the property, backs the plan. Lawyers for Beal Bank, a mortgage holder, objected to the plan, arguing that any fees paid the McLean-Massey go to creditors instead. Judge Black rejected the argument, stating that the men can be paid for future work.

    Beal Bank, who holds the first mortgage on the property, has suffered setbacks in their goal of getting full payment on their loan. U.S. Bankruptcy Judge Bruce Black ruled that the McLean-Geneva plan has secured  a financing commitment for the restructuring.

    Florida real estate investor Shlomo Khoudari has agreed to provide $17.5 million in financing. He would own the building if it emerges from bankruptcy protection.

    If you have questions about bankruptcy court , contact a Chicago bankruptcy attorney. The bankruptcy process is complicated. A bankruptcy lawyer can answer any questions you may have.

  • Illinois legislators take aim at powerful debt collection industry

    Illinois General Assembly continues to mull over legislation that would change how the state’s repossession agents operate.  Illinois bankruptcy and repossession lawyers , consumer right advocates, and other professionals connected to the debt collection industry view the law as a positive sign toward protecting individuals from collectors.

    Illinois Senate bill No. 1306-the Collateral Recovery Act-has made it to the House’s Judiciary Civil Law Committee.  The bill will probably be modified by the Committee.

    The Act would significantly change state law.  If passed, it would require licensing of repossession agencies and recovery managers as well as repossession agency employees. The law would contain certain provisions addressing qualifications, application, examination, assignment, insurance requirements and administrative proceedings of the recovery companies.

    The bill was recently amended to become enforceable on July 1, 2012.

    The law also requires repossession agents to buy permit tickets for each potential recovery. The cost of tickets will be $10.  The bill makes it a crime to not purchase a ticket.

    Concerning enforcement of the law, legislatures will grant the Illinois Commerce Commission jurisdiction over industry disciplinary action and the licensing of managers, companies, and agents. State, county and local governments would also be required to assist the Commission in the enforcement of the law.

    The Act would have an impact on the entire debt-handling industry, including foreclosures, bankruptcies, and property repossession.

    Many professionals within the industry applaud the Assembly’s attempt to regulate more heavily the processes of debt collection.  Out of control debt collection is especially a problem in Chicago and other highly populated areas of the state.  Most  Chicago based bankruptcy attorneys , for example, believe the law will better protect their clients from a variety of issues associated with the process.