Roxby Bankruptcy Cases Dismissed, Foreclosure Action Expected … – Wheeling Intelligencer

WHEELING A federal judge on Wednesday dismissed the bankruptcy cases filed by Roxby McLure LLC and Roxby Development and lifted the stays that had temporarily protected the embattled company from legal action by a long list of creditors.

Judge David L. Bissett presided over a hearing via teleconference Wednesday afternoon in the U.S. Bankruptcy Court of the Northern District of West Virginia on a motions to dismiss Roxbys bankruptcy cases based on failure to maintain insurance specifically property insurance on the Scottish Rite building and the McLure Hotel and its adjacent parking garage. Parties noted that there is only liability insurance on the McLure Hotel properties at this time.

Several parties joined the hearing, including a number of creditors to whom Roxby owes significant amounts of money.

Attorneys representing the former owners of the McLure House and the Scottish Rite Cathedral both concurred with attorney Shari Collais, representing the Office of the U.S. Trustee in the bankruptcy cases, that property insurance on both landmark buildings in the city was necessary to protect the interests of the creditors involved.

Roxby President Jeffrey Morris and his attorney, Salene Kraemer, requested additional time to secure money through a DIP (Debtor-in-Possession financing) loan to secure property insurance for the properties within the next week or two, but the judge dismissed the bankruptcy cases and granted motions to lift the stay.

The Chapter 11 bankruptcy filings had triggered an automatic stay against further legal proceedings just before a foreclosure sale on the McLure House and the adjacent parking garage was scheduled to take place. Attorney David Delk, named substitute trustee on the deed of trust for the McLure Hotel and parking garage, had planned to move forward on a foreclosure sale of the property on behalf of the hotels previous owner FA Management Inc. and FG Management LLC.

Shortly after Wednesdays ruling in U.S. Bankruptcy Court, Delk submitted a public notice of a new date of sale at 10 a.m. June 1 in the Ohio County Courthouse for the McLure House Hotel and parking garage.

Attorney David Croft of Spillman Thomas & Battle, representing the Scottish Rite, said he is also planning to take similar action as soon as possible to foreclose on the Scottish Rite Cathedral.

According to the bankruptcy filing on behalf of Roxby Development, Roxby Labs and Roxby McLure LLC, the company is in debt to the tune of between $10 million and $50 million.

Return to theintelligencer.net later for more on this developing story.

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Roxby Bankruptcy Cases Dismissed, Foreclosure Action Expected ... - Wheeling Intelligencer