Developer Told to Pursue Chapter 7 Instead of Chapter 11

Developer Jerry Trooien has been advised by the U.S. Trustee supervising his bankruptcy case to ask the court to convert his Chapter 11 filing to Chapter 7 bankruptcy instead. A similar request to the court was made earlier in the week by GE Capital, one of Trooien's major creditors.

Court documents show that Trooien owes GE Capital in excess of $280 million against the paltry $6.5 million he has claimed in assets. According to the Pioneer Press Trooien is now pushing for liquidation where he would be forced to sell off his assets to go towards his overwhelming debts.

Trooien is being represented by attorney James Baille who wants to keep the bankruptcy case on a track towards reorganization. Braille hopes to answer with a counter filing as soon as next week.

The developer is known for proposing the concept of "Bridges of St. Paul" five years ago. If the plan had been realized a hotel, entertainment destinations and shops would have been erected near the city's downtown area.

If you're facing Chapter 11, contact the Malaise Law Firm to get assistance from a San Antonio bankruptcy attorney.