Former St. Paul real estate developer Jerry Trooien, who filed for Chapter 11 bankruptcy last year, has reached a deal with one of the biggest creditors listed on his bankruptcy filing, General Electric Capital.
According to the Twin Cities Pioneer Press, GE's financial dispute with Trooien started before filing for bankruptcy. GE has claimed that the developer owed them money for jets he leased for his failed private jet service venture, JetChoice. GE had reportedly won a judgment against Trooien and two other parties of $18 million and had put liens on 29 properties owned by the developer.
Now, the company has reportedly agreed to drop the liens and the separate case against Trooien in exchange for a payment of $87,500. However, GE still claims it's owed $10 million.
According to the St. Paul Star-Tribune, many observers have claimed that Trooien's ventures away from real estate and into aircraft leasing have been his undoing. GE is reportedly one of at least two lenders that have sued Trooien over failing to repay loans related to leased aircraft. Bank of America Leasing & Capital reportedly sued the developer in 2009, and is currently owed approximately $16 million.