Harder Hall Creditors Offered Half What’s Owed
By MANDY SHEETS

SEBRING — Businesses that completed work on Harder Hall may only see half the money they are owed, according to a redevelopment plan filed Wednesday.

Marc Shenker and Joran Realty filed for Chapter 11 bankruptcy Oct. 20, 2006, which requires the company to form a reorganization plan.
Jim McCollum, an attorney representing creditors holding unsecured claims, said the plan submitted Wednesday is substantially different than what Shenker originally promised.

“They misrepresented to the court what they planned to do,” McCollum said. “They said my clients would be paid in full, and now they are changing their story.”

All general unsecured creditors, who are collectively owed more than $626,000, will receive 50 percent of their claims, according to the plan.
Claims of about $5.2 million to the city of Sebring, $1.05 million to Historic Harder Hall Inc. and $150,956 to the Highlands County Tax Collector will be paid in full without dispute.

Shenker is disputing a handful of other claims, including $62,448 to Atlantis Electrical Services and $307,600 to Bristol August, Inc., and the court will determine what amount, if any, will be paid.

About 160 creditors have filed claims against the hotel, including 63 Sebring businesses and 11 businesses and contractors in Highlands County.
McCollum said the redevelopment plan, as presented, would not reimburse businesses fairly for their work.

“If they are allowed to do that, it will impact the people of Sebring who dealt with this man in good faith,” McCollum said. “There are a lot of good businesses who he dealt with and told he would pay.”

Meanwhile, the city has filed a motion that would allow foreclosure on the mortgage, which will be heard at a Feb. 14 hearing in Miami. City Attorney Bob Swaine could not be reached for comment about the motion before deadline.