More troubles for former Gas City owner
By Mike Nolan email@example.com June 10, 2012 4:18PM
Updated: July 12, 2012 6:07AM
Financial problems are mounting for former gas station magnate William J. McEnery.
Creditors want a federal judge to convert his ongoing bankruptcy case to a liquidation, with his remaining assets being sold off to satisfy creditors, and the bank that holds the mortgage on his Homer Glen house is seeking to have him evicted, according to court records.
Also, the law firm that was representing McEnery in his bankruptcy reorganization has received court approval to withdraw.
McEnery’s chain of Gas City stations was sold off last year after the trust that owned the properties filed for bankruptcy, and McEnery was forced by creditors into personal bankruptcy a year ago.
McEnery has sought additional time to file a plan for emerging from bankruptcy, but two banks he owes money to say it’s not “even remotely possible” he will be able to come up with a viable plan because of the large number of claims filed against him, according to a court filing. The banks said McEnery has listed about $121,000 in assets, but claims totaling more than $286 million have been filed against him.
If the case isn’t converted to a liquidation, a trustee should be appointed to oversee what remaining assets McEnery has, the creditors contend in their filing. They say the case “has been a travesty that simply allowed (McEnery) to continue to waste time and burn through estate assets.”
Separately, Standard Bank is asking the bankruptcy court judge to allow it to take possession of McEnery’s Homer Glen house as well as a Florida condominium and other property in Homer Glen near his home. The bank holds the mortgage on all the properties and received court approval last summer to take back title to them in lieu of foreclosing on the mortgage.
In March, McEnery and the bank agreed that McEnery could lease his home and the other properties for $20,000 a month, but Standard Bank now says McEnery has missed his two most recent payments. At a hearing scheduled for Wednesday, the bank will ask the bankruptcy court judge to allow it to evict McEnery.
Also, the Northbrook law firm that had been representing McEnery has received permission to drop him as a client. The firm, in its filing, suggested that McEnery hasn’t been paying his lawyers telling a judge that “its continued representation (of McEnery) will result in an unreasonable financial burden” on the firm.