LNB Objects to Barber’s Mismanagement

LNB argued in its brief in support that Barber has acted in bad faith with the bankruptcy filing because he has neither the intent nor the ability to reorganize his business — citing the lack of equity in the properties he listed as assets — and the intent of the filing was solely to stave off the foreclosure sale.

The bank cited Barber’s mismanagement of the project as reason for a trustee to protect LNB’s interests.

The brief said Barber had received shut-off notices for building utilities this winter and allowed the building’s insurance to lapse.

LNB has also objected to Barber’s hiring of Fayetteville attorney Vaughn Knight as his advocate in the bankruptcy proceeding because Knight is also representing Barber in the lawsuit against the bank and FK.

The bank demanded disclosures from Knight, asking for details of how Barber has compensated him for legal fees and whether Knight has been paid from a third party on behalf of Barber.

LNB has also objected to Barber’s attempt to sign a “right-to-sell” agreement with Margie Moldenhauer of RE/MAX to market the building after FK’s ceased involvement.

Barber is claiming to be the “debtor in possession” of the Legacy but LNB argued Barber doesn’t have the resources to keep the building viable and its value will continue to be diminished.

A hearing has been set for Sept. 26 to rule on the motion to dismiss, the “right-to-sell” agreement and LNB’s objections.