Developer trying to erase debt, get out of Ch. 7

GROVELAND -- A Lake County developer who last week converted from Chapter 11 reorganization to Chapter 7 took action this week to get out of bankruptcy.

Groveland Estates LLC principal Conrad Wagner -- who filed for Chapter 11 earlier this year to fend off the foreclosure of his Lake County property -- made a nearly $56,000 payment on Dec. 3 to one of his lenders in an effort to regain control of his firm.

As a result, he now has until Jan. 18 to repay the $3.6 million loan.

Florida Real Estate Ventures LLC foreclosed on Groveland Estates' loan in April after the developer failed to make payments. The foreclosure required the sale of Groveland Estates' 155-acre property, the site of a proposed mixed-use development in south Lake County.

Groveland Estates responded to the foreclosure by filing for Chapter 11. An April 23 summary filed with the court says Wagner was confident he could refinance or manage the existing debt and protect his investment under Chapter 11.

Groveland Estates converted to Chapter 7 bankruptcy on Nov. 28 in another attempt to stall the foreclosure sale, says Peter Hill, Wagner's attorney.

Nevertheless, the property, valued at $34.5 million, was sold to the lender on Nov. 29 in Lake County Circuit Court for about $100. But the sale wasn't finalized due to the bankruptcy court stipulation giving Wagner until Jan. 18 to pay off the debt and continue with his ­proposed project.

If Groveland Estates can't pay off the debt by then, the property sale will be finalized, a court filing says.

Meanwhile, both parties at a Dec. 4 Chapter 7 bankruptcy hearing agreed to allow Wagner to continue living and working at the $9.5 million, 32,000-square-foot mansion on the property if he insures it.

Further, Wagner's firm plans to move forward with its mixed-use project, says Hill.

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source: bizjournals.com