Trustee, City Work On Compromise
MONDAY’S HEARING POSTPONED
By MANDY SHEETS

SEBRING — Although no work is being done to the physical structure, officials say progress is being made that could eventually lead to a change at Harder Hall.

Ken Welt, Chapter 11 trustee from Hollywood, Fla., said he is working with city officials to reach an outcome that will be attractive to all parties.

The court appointed Welt as trustee after a Feb. 14 hearing, which determined that Marc Shenker, president of Joran Realty, which owns Harder Hall, was allowing one investment company to control the project. Appointing an impartial trustee gives all parties an equal opportunity to become involved with the project.

Welt is planning a trip to Sebring on Thursday to meet with officials and visit the property again. He is in the process of evaluating all aspects of the project, compiling information and moving forward with marketing the property.

The reorganization plan he submits will likely entail sale of the property, Welt said. Many prospective buyers have already contacted Welt, he said.

A hearing scheduled Monday at the Southern District of Florida U.S. Bankruptcy Court in Miami was continued until March 21. Marsha Rydberg, attorney representing the city, said attorneys involved in the case wanted more time to work toward a plan that could be approved by all parties.

“Bankruptcy is a negotiative process,” Rydberg said. “Right now we are trying to work together to find a plan that will be good for everyone.”

The city did not pursue its motion that would allow for foreclosure on the property, which was scheduled for Monday’s hearing.

Rydberg said the city would prefer to reach a joint agreement for a reorganization plan.

The city is the largest creditor and is owed $5.2 million for mortgage payments. The city also has paid $150,000 in real estate taxes and continues to foot the bills for security, electricity and insurance at the property.

“The city wants the hotel to be open, but the city wants the money it’s owed as well,” Rydberg said. “A lot of people who are owed money are city residents, and the city wants them to be paid, too.”

Welt said he hopes the sale of the property will result in enough money for creditors to be paid all the money they are owed. A previous reorganization plan, submitted Jan. 22 by Joran Realty, suggested paying 50 percent of all general unsecured creditors, who are owned more than $626,000. About 160 creditors have filed claims against the hotel, including 63 Sebring businesses and 11 businesses and contractors in Highlands County.

“The city is rightfully concerned with local merchants being paid,” Welt said. “We are working toward a plan that will pay creditors 100 percent of what they are owned.”