The almost TCI bankruptcy of the day

In this case, Far East Bank loaned $28.7 million to ARL and several subsidiaries. The subsidiaries all quit making their payments and filed bankruptcy petitions on July 19,2010. However, Far East Bank had some smart lawyers and unlike other lenders who were stiffed by TCI and their subsidiaries, Far East went after only American Realty in Nevada state court. Well, what do you think American Realty tried to do but remove it to, you guessed it, bankruptcy court where its subsidiaries filed their petitions.

Far East Bank fought the transfer and won. The bankruptcy judge ordered it back to state court. The state case is now tied up on legal issued and is on appeal to the state supreme court although it has not been adjudicated at the trial court level. Far East trying to collect its $28 million.

Jackson Jambalaya
10/17/11