St. Petersburg Times
Pinellas
Special report
Video report
  • For their own good
    Fifty years ago, they were screwed-up kids sent to the Florida School for Boys to be straightened out. But now they are screwed-up men, scarred by the whippings they endured. Read the story and see a video and portrait gallery.
  • More video reports
Multimedia report
Print Email this storyEmail story Comment Letter to the editor
Fill out this form to email this article to a friend
Your name Your email
Friend's name Friend's email
Your message
 

Home developer files for bankruptcy

Boca Ciega Corp., which is building 23 homes in Seminole, says money isn't its main problem.

By ANNE LINDBERG
Published May 12, 2007


ADVERTISEMENT

SEMINOLE - A local developer of a gated subdivision has asked a federal bankruptcy court for protection while a dispute among the corporation's shareholders is worked out.

The Boca Ciega Corp., which is building 23 homes at 10803 54th Ave. N, filed for Chapter 11 bankruptcy in January. Among other things, the company's president, Gay Varano, is asking that the corporation be reorganized.

Clearwater lawyer Michael Markham, who is handling the bankruptcy, said, "The Boca Ciega situation is kind of unique."

The corporation did not declare bankruptcy because there is not enough money to pay the creditors. The bankruptcy is designed to allow the corporation to continue selling property while a dispute between the shareholders is ironed out.

"It's more legal issues than financial distress, " Markham said.

One of the shareholders is the person who financed the original purchase of the land. Among the issues, Markham said, is how much that shareholder should be paid when lots are sold.

If those issues can be ironed out, Boca would exit bankruptcy quickly, he said. As it is, the company expects to be out of the court system in the next few months.

Papers filed with the U.S. Bankruptcy Court for the Middle District of Florida show that the corporation's main asset is the land, which is slated to become the Boca Ciega Club. The property is valued at $4.2-million. The corporation's debts total about $2.4-million, according to the court records.

Even though the company has filed for bankruptcy protection, Boca Ciega continued to operate and has sold at least three lots since filing for reorganization. The court has allowed the sale of those lots and has removed any liens covering them so the buyers will have no fear of future problems.

Company officials intend to continue selling lots and have scheduled an open house for 11 a.m. to 3 p.m. today at the property.

[Last modified May 12, 2007, 07:56:26]


Share your thoughts on this story

[an error occurred while processing this directive]
Subscribe to the Times
Click here for daily delivery
of the St. Petersburg Times.

Email Newsletters

ADVERTISEMENT