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Tuesday, Sep 26, 2023

Judge Converts Developer Roth’s Chap. 11 Filings

Judge Converts Developer Roth’s Chap. 11 Filings By SHELLY GARCIA Senior Reporter A U.S. Bankruptcy Court judge has agreed to convert Randall Roth’s petition for reorganization to a bankruptcy proceeding, setting the stage to liquidate the assets of his company, Randall Roth Capital Corp., along with his personal assets. David R. Hagen has been appointed trustee in the case. The first meeting of creditors is scheduled to take place on July 20 at the Trustee’s Office in the Woodland Hills bankruptcy court complex. “Creditors can come and watch me examine whoever the representative of the corporation is and creditors have an opportunity to ask them questions related to assets and liabilities,” said Hagen. Another meeting is expected to be scheduled for Roth’s personal bankruptcy case, which has also been converted to Chap. 7 status. Creditors in a bankruptcy hearing are not required to attend the meetings, in which the trustee determines how to utilize a debtor’s assets to pay creditors. According to documents filed on behalf of Randall Roth Capital Corp. the company has debts totaling $4,750,000 and assets totaling $1,800,000. The personal filing lists debts of $3,354,000 and assets of $771,450. Roth, a developer who until last year managed the Sunquest Development project, an ambitious industrial redevelopment effort in Sun Valley, returned a call to the Business Journal, but he became angry at the reporter and hung up before he could be asked for his comments on the conversion of the case. At a hearing in bankruptcy court in May, Roth said that he filed the Chap. 11 petition in order to continue with development projects he was working on. “We had debts in excess of our current assets,” Roth told the Judge Kathleen Thompson Lax on May 11. “The company was being restrained and unable to move forward. Bankruptcy will allow us to move forward on projects.” The corporate Chap. 11 case, first filed in April, was converted to Chap. 7 bankruptcy because the company was not represented by counsel, a requirement for companies that file for reorganization. A Chap. 11 proceeding is used to restructure debt to return a company or individual to financial solvency. A Chap. 7 proceeding is used to liquidate a company or assets in order to pay off debtors.

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