Owner of Famous South Beach Mansion Files for Bankruptcy Relief
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Owner of Famous South Beach Mansion Files for Bankruptcy Relief

July 11, 2013


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The owner of Casa Casuarina LLC, the owner of the eponymous mansion on Miami’s South Beach, is filing for Chapter 11 bankruptcy, according to a report from the Miami Herald.

The company’s owner, Peter Loftin, reportedly decided to seek debt relief in bankruptcy court in order to prevent creditors from filing foreclosure against the mansion, which features 10 bedrooms, all elaborately decorated to fit different themes.

In addition to potentially stopping home foreclosure, the bankruptcy filing will also throw a wrench in the plans of the mansion’s mortgage holder, VM South Beach, which is trying to appoint a receiver to assume control of the mansion’s finances.

The oceanfront estate, which also has 11 bathrooms and a 54-foot lined with 24-karat gold, has been a fixture on South Beach for several decades.

But financial woes have troubled the owners of the mansion for a few years, and the company’s financial health took a steep dive after its latest occupant, which ran a hotel and restaurant at the state, moved out in May.

The occupants were troubled by the uncertain financial status of the mansion’s owners, the potential for foreclosure, and recent reports that Casa Casuarina’s insurance on the property had recently lapsed, sources say.

Loftin’s bankruptcy attorneys, however, claim that the company has insurance, but the mortgage holder believes that the insurance won’t be enough to cover the debt it is owed, which is roughly $31.5 million, according to reports.

Loftin reportedly tried to sell the property last year, originally listing the elaborate Mediterranean-style mansion at $125 million. The price later dropped to $100 million, and currently sits at $75 million, sources indicate.

And while the company is now in the safe confines of bankruptcy court, there are still plenty of questions that remain to be answered. For example, VM South Beach has asked the court to appoint a trustee to watch over the mansion during the court proceedings.

But Loftin claims that "a Miami Beach Police Sergeant" is currently "living on the premises with his wife and three children," so the mansion does not need to be placed in the hands of a third party.

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