Dixie, Israel File Bankruptcy
by October 6, 2008 12:00 am 99 views
For Brandon Barber, most observers of the area real estate market were wondering when, not if, he would file for bankruptcy.
The same could be said for Ben Israel’s Dixie Development & Management, who has been embroiled in legal and financial difficulties since being hit with an IRS tax lien in January 2007.
Market watchers got their answer on Sept. 29 when Israel filed both individual and business Chapter 11 bankruptcy in the Western District of Arkansas federal court.
On both filings, Israel claimed assets of $10 million to $50 million and liabilities of $10 million to $50 million.
With several asset and liability schedules still to be filed before Oct. 14, a picture of the state of Israel’s company is not yet clear.
The only schedule filed so far lists the top 20 creditors holding unsecured claims, which total out to $2.42 million, well short of the liabilities claimed.
The individual and business filings indicate Israel has between 50 and 99 creditors.
His Commerce Park II office building in Fayetteville has been foreclosed upon and is set to be sold at auction at 10 a.m. on Oct. 15 on the Washington County District Court steps.
Israel’s former business partner Tom Muccio also hit him with lawsuits on Sept. 29, claiming he is owed $1.03 million for the Commerce Park II project and another $239,306 for Israel’s share of several liability settlements made by Muccio in September 2007.