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Sheldon Good Files Bankruptcy with $4M in Liabilities & $250K in Assets

http://www.chicagotribune.com/business/chi-sat-sheldon-good-apr25,0,4254327.story

chicagotribune.com

Sheldon Good bankruptcy: Real estate firm blames ex-chairman for Chapter 11 filing

By Mary Ellen Podmolik

Tribune reporter

April 25, 2009

Commercial real estate brokerage and auctioneer Sheldon Good & Co. announced Friday that its nine operating entities had sought Chapter 11 bankruptcy protection and blamed the move on “improper actions” taken by its former chairman, Steven Good.

After Steven Good’s Jan. 5 suicide, “debtors discovered that Mr. Good, without authority, had withdrawn substantial monies from the debtors’ operating accounts, calling it compensation, which left the debtor without reserves in the most difficult economic climate we have experienced in 20 years,” company President Alan Kravets said in an affidavit included in the bankruptcy filing. “The decrease in operating capital created by Steven Good’s misappropriation of monies magnified the effects of the current economic downturn and an overall decline in the U.S. real estate market.”

Kravets did not return phone calls for comment. The company’s bankruptcy attorney, Heidi Sorvino, declined to specify the amount of money involved.

The firm has secured $2 million in debtor-in-possession financing, Sorvino said. “They have a ton of business in the pipeline,” she said. Under Chapter 11, a company is protected from creditors while it designs a plan to repay debt.

In its filing with the U.S. Bankruptcy Court for the Southern District of New York, the company listed assets of $250,000 and liabilities of $4 million. The documents also show a negative net cash flow of $215,664 over the next 30 days.

The two largest unsecured creditors listed were JPMorgan Chase Bank, with a loan of $650,000, and New York-based Miller Advertising Agency, with trade debt of $699,000.

Good, 52, was found Jan. 5 behind the wheel of his Jaguar in a Kane County forest preserve with a self-inflicted gunshot wound to the head. No note was found.

A month before Good’s suicide, he acknowledged the challenging conditions of the commercial real estate market.

The firm, known nationally for its auctions, was founded by Steven Good’s father, Sheldon Good, in 1965.

mepodmolik@tribune.com

 

 

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