Trustee Being Named In Bankruptcy
By MANDY SHEETS

MIAMI — A trustee will resume responsibility for the Harder Hall case, likely opening the project to bidders, after a hearing Wednesday.

Steven Schneiderman, attorney for Office of the U.S. Trustee, said he hopes to have a decision soon about appointment of an uninvolved third party to take over management from Joran Realty, which planned to renovate the hotel but declared Chapter 11 bankruptcy Oct. 20, 2006.

Judge Laurel Myerson Isicoff said, at the Southern District of Florida U.S. Bankruptcy Court hearing, her ruling is based on Joran Realty failing to meet deadlines for submitting a disclosure statement and the appearance that Joran Realty is no longer managing the case.

Joran Realty submitted a reorganization plan in January but did not submit a disclosure agreement. The plan stated unsecured creditors would be paid 50 percent of their claims.

At Wednesday’s hearing, Brian Gant, an attorney representing Kenwhite, a New York-based investment company, presented another reorganization plan. Gant said Kenwhite would fund the new plan, which would have paid creditors 100 percent of their claims by May.

Schneiderman said he saw the offer of this plan a way to further delay the case and give Kenwhite an unfair advantage.

“This plan is a way to retain exclusivity for an investor group so as not to expose this property to the open market and see there are other parties interested in joining in,” Schneiderman said.

Isicoff said she was reluctant to give Joran Realty any more time to negotiate the plan.

“You say you will live or die by these new deadlines,” Isicoff said. “But the court already set deadlines which were disregarded.”

Isicoff also said although she does not question the mental or physical capability of Marc Shenker, president of Joran Realty, it’s clear to her
Kenwhite is running the case, not Shenker. Having a trustee will give all parties equal opportunity to become involved with the project.

“If we continue this, it’s the same situation as before,” Isicoff said. “It just creates a longer period of time that the creditor’s interest is not being represented by an independent person.”

She suggested Kenwhite negotiate with a Chapter 11 trustee, once that person is appointed.

Gant said after the ruling he had no comment about whether Kenwhite would pursue the project. He did say the company would stop payment of electricity, security and insurance bills.