Business Bankruptcies

The issues surrounding Maria Vista Estates, perched above the sounds and smells of the Santa Maria Speedway, have been well-documented by the former Central Coast Housing Bubble Blog.

It looks as though things are finally coming to an end; this from The Tribune:

Maria Vista Estates is in Chapter 7 proceedings in federal bankruptcy court.

Chapter 7 involves the sale of a debtor’s assets and the distribution of the proceeds to creditors.

In March 2007, Maria Vista filed for Chapter 11, in which a debtor typically sets forth a plan of reorganization to keep its business afloat and pay creditors over time.

But Judge Robin Riblet in Santa Barbara converted the case to Chapter 7 this summer.

The note holder is Security Pacific Bank in Los Angeles and the amount is $26 million. The note was personally guaranteed by the owners Eirk Benham and Mark Pender and they have already had a judgment against them for $23 million. For a much better article, check out the Pacific Coast Business Times.

Downtown San Luis Obispo did not seem to escape the No-Money-Down financing craze. From The Tribune:

The longtime owner of Thomas Everett Salon and Tom-Mel Beauty Center in downtown San Luis Obispo has filed for Chapter 7 bankruptcy.

Thomas Everett Setser, and his wife, Kristie K. Setser, both of Shell Beach, voluntarily sought bankruptcy relief from the court July 25. Chapter 7 is designed for those who typically do not have the ability to pay outstanding debts.

According to court documents,Thomas Setser’s largest debt is because of more than $1 million owed on his 4,000-square-foot salon building at 1119 Chorro St. San Luis Capital has claims on the property, with $732,000 owed on it as a first mortgage. Lender Mid-Coast Mortgage holds $333,000 on a second mortgage against the property, according to the documents.