If the mods feel this needs to be move please do. I just thought I'd put it here because of our beloved Walter Paytons relation to the round house. I remember when it was first built in his honor so to speak.
Roundhouse files for bankruptcy reorganization
AURORA — America’s Historic Roundhouse restaurant and brewpub has filed for Chapter 11 bankruptcy protection after months of unpaid bills and taxes that have kept business owners in the courtroom.
Scott Ascher, owner of the Roundhouse, on Monday filed for bankruptcy protection in U.S. Bankruptcy Court under the name “America’s Brewing Company.” The filing details more than 80 businesses to whom the Roundhouse owes money, including the city of Aurora, ComEd and Blue Star Energy Services Inc.
Ascher said Wednesday that the owners of the Roundhouse — America’s Brewing Company and First Round Fourth Pick Partnership — decided to file for bankruptcy in order to sell the building to Palentine-based Durty Nellie’s Pub or one of two other interested parties. Because of the Roundhouse’s mortgage, filing for Chapter 11 was necessary, Ascher said.
“The purpose of selling the building is to get the taxes paid off,” he said. “It’s just reorganization. We’ve explained to brides and future parties what is going on.”
Ascher said the mortgage broker, Ciena Capital Funding, advised the business to file for Chapter 11 bankruptcy.
“We couldn’t figure out a way to pay the taxes off. It’s not their fault; it’s our fault because we fell behind. But selling the building can get us back to zero,” he said.
Not only will things at the Roundhouse go as they are, Ascher said, who has even booked his own nephew’s wedding at the venue in September, but they plan to expand after a building sale.
“We want to expand the club, we want to expand a now very small bottling line. They want to expand the business with us,” he said of potential building buyers.
But Bill Wiet, chief development officer for the Aurora, said the city intends to ensure that the business in the Roundhouse building is viable from here on out, and that officials are on the hunt for “a high-quality operator.”
“First and foremost, we want to transition to a high-quality operator, and we have identified some interested parties,” Wiet said. “I don’t want to discount the fact that the city is owed money, but because of Chapter 11, the bankruptcy court will be making major business decisions from now on.”
The city’s back taxes “pale in comparison” to other debts that are owed and lawsuits that have been filed against the Roundhouse, Wiet said.
Filing details debts
According to court records, the Roundhouse owes more than 80 companies money, apart from what is owed on the mortgage.
The business owes the city $64,953, the IRS more than $122,000 and the Illinois Department of Revenue more than $86,000 in back taxes, according to court filings.
Besides the government, the business owes utilities big, too. Roundhouse owes ComEd $31,350, the city water department $2,813 and Waste Management of Illinois more than $1,000. Other creditors owed are vendors and financial capital services.
According to Chief of Staff Carie Anne Ergo, there is $6.7 million in Roundhouse outstanding obligations owed to the city, some that date back to the original development agreement.
Citing Kane County records, Wiet said that the Roundhouse now owes more than $120,000 in city property taxes for part of 2008 and 2009.
Citing Ascher’s latest testimony at a city hearing, the Roundhouse also owes more than $150,000 in payroll taxes, Wiet said.
“Without the mortgage and the (Walter) Payton lawsuit, things have added up over the year; they are approaching $1 million,” Wiet said.
Past legal troubles
In March 2010, Aurora filed suit in Kane County Court against the Roundhouse seeking back taxes, but the suit was later settled.
At the time, the city also alleged that Ascher owed $9,391 in rent for parking spaces at the Aurora Transportation Center next door. The suit was dismissed without prejudice in June, after Ascher agreed to pay back and current taxes, but city spokesman Kevin Stahr said Ascher had not kept up with the agreement.
In 2005, the city filed a breach of contract lawsuit against the Roundhouse in an effort to recoup its share of the $10 million bond floated to renovate the property. Also in 2005, city employees blockaded one of the Roundhouse’s entrances, bringing a dispute over rented parking spaces.
But the city hasn’t been the only entity seeking to recoup money from the Roundhouse.
In December 2009, the family of the late Walter Payton decided not to renew a deal with the Roundhouse to use Payton’s name and likeness. Shortly after, the family filed suit against Ascher, his wife Pamela, and the three partnerships to which they belong (First Round Fourth Pick Ltd., Brewers for Urban Development Inc. and America’s Brewing Company).
The suit alleged that Ascher owed $1.66 million on an agreement with the Paytons to pay for the football legend’s name and likeness.
Ascher stopped making payments following Payton’s November 1999 death, citing that the estate “can’t expect the same return Walter was getting.”
The suit also alleged that Ascher took out a mortgage in December 2005 unbeknownst to his investment partners, including the Paytons.
In October 2010, Ciena Capital Funding, the Roundhouse’s mortgage backer, alleged that the mortgage is also in default in a court case filing. The suit says Ascher missed a May payment and had since refused to pay off the rest of the mortgage.
According to the Feb. 14 bankruptcy filing, he owes about $3.7 million to Ciena Capital.
Ciena Capital requested a judge grant it the assets of the Roundhouse at that time, estimated to be valued at $1.75 million, court records show.
For three days at the beginning of December 2010, the Roundhouse was not allowed to serve alcohol, as Ascher did not provide proper documents to renew his state liquor license.
LINK
http://beaconnews.suntimes.com/38603...anization.html
