Livingston developers file for bankruptcy
Developers behind the Livingston Township development have filed Chapter 11 bankruptcy on one of the associated corporations, federal court records show.
Michael Bollenbacher filed the bankruptcy paperwork in November on behalf of Livingston Township Fund One, LLC, with a business address located at the Township.
Chapter 11 bankruptcy allows debtors to retain assets and operate a business during what is generally described as a business reorganization of debts.
According to the petition, the corporation had over $6.1 million in assets, the vast majority being real property, compared to nearly $5.8 million in debt, with over $4.6 million of that being secured claims.
Supplemental paperwork listed only $2,900 of cash on hand, with $550,000 in past-due rent from an unnamed tenant. The rest of the assets are the nearly 5 acres with four commercial buildings that comprise the Township.
The largest creditor is the Bank of Montgomery based out of Natchitoches, La., which has a lien on the property and debt of over $4.6 million.
A number of local and out-of-state residents also have unsecured claims ranging from $25,000 to upwards of $300,000 as investors in the development. The Small Business Administration has an outstanding amount due of $113,000, according to the paperwork, and an unknown amount is owed to USDA Rural Development.
A hearing has since been scheduled for Feb. 6, to determine if the corporation can sell property free and clear of liens. It’s unknown how much property the corporation intends to try to sell and attempts to contact Bollenbacher were unsuccessful.
The Livingston Township development began in 2009 when county supervisors approved plans for a 47-acre mixed-use development that was supposed to include 64 cottage-style homes. David Landrum was the initial developer of the project.
In 2011, Landrum complained that supervisors were making him jump through too many hoops to get variances approved for street and parking configuration.
Fast forward a few years and the property has a general store, restaurant, chapel, and some retail fronts. The cottage homes never materialized as the investment into the development didn’t reach the $80 million that developers once touted.