By Chris KramerJune 07, 2011
The owner of Washington state's Clam Cannery Hotel says he plans on restoring part of the property despite filing for Chapter 11 bankruptcy, according to the Peninsula Daily News.
Kevin Harris of Port Townsend plans to go ahead with development through his business, Quincy Street at the Waterfront LLC. However, the newspaper said Columbia Bank, which claims Harris is in default of a $1.8 million loan, plans to argue that they should be able to foreclose on Harris since he does not have any equity on the property.
In April, the bank rejected a reorganization plan filed by Harris' attorneys which proposed a repayment of $2.05 million. The bank claims Harris owes them $2.07 million, which includes $55,000 in lawyers and appraisal fees, reported the news source. Because an appraisal of the property valued it at $1.4 million, the bank's attorneys are reportedly arguing that Harris has no equity in it and therefore it shouldn't be part of Quincy Street's reorganization plan.
"The bottom line is I have adversarial proceedings against the bank, and we don't see eye to eye," Harris told the source.
Harris is scheduled to appear at a bankruptcy court hearing on June 10.
Chapter 11 is a form of bankruptcy that involves the reorganization of the debtors business affairs and assets, according to the U.S. Courts website. It is usually the most complex and expensive of all bankruptcy cases.