By Chris Kramer
The personal bankruptcy of Clem Carinalli, the largest ever in Sonoma County history, is slowly drawing to an end as a U.S. bankruptcy judge has approved Carinalli's plan to repay his creditors.
The plan, according to the Press Democrat, involves liquidating all 150 of the financier's remaining real estate holdings, including his home. The repayment plan has been approved after 14 months of negotiations, according to the news source.
Carinalli owes nearly $194 million to secured and unsecured creditors. A bankruptcy trustee has been assigned to liquidate Carinalli's properties, and unsecured lenders are expected to receive between 26 and 56 percent of their original investment back over the course of five years, the news provider reports.
"Oh thank God. I had given up all hope and figured I'd never get anything back," one of Carinalli's investors said of the repayment approval decision.
Carinalli was also pleased with the repayment plan's approval, pledging to "work as hard as I can to get it done."
Carinalli filed for bankruptcy under Chapter 11 of the bankruptcy code. Most Chapter 11 filings are business reorganizations, but individual consumers can file Chapter 11 bankruptcy under certain conditions.