What will occur to Stow-Glen Retirement Village and will former personnel ever get their again wages?
Marc P. Gertz, an Akron law firm who specializes in bankruptcy law, explained it doesn’t look Stow-Glen will file for bankruptcy for the reason that a court-appointed receiver is by now working to liquidate Stow-Glen’s assets.
When Stow-Glen notified the condition of Ohio it was closing in July, it mechanically defaulted on its loan with Northwest Financial institution, triggering a legal agreement to appoint a receiver.
The receiver, appointed by a Summit County Common Pleas judge, will offer Stow-Glen’s true estate, auction off or sell off its property -—everything from beds to artwork on the walls — and collect remarkable payments owed to Stow-Glen.
In which will the dollars go?
All of that cash will go to Northwest Financial institution, which stated in court information that it is out about $4.2 million on its loan offer with Stow-Glen.
“They have the very first chunk at it simply because they’re the secured loan company,” Gertz claimed. “Where does that go away most people else? Nowhere.”
Gertz stated he uncertainties the cash gathered all through the liquidation will equivalent what is owed to the bank.
So former workforce and any individual else who could possibly be owed dollars from Stow-Glen would be out of luck.
Gertz said it normally usually takes a pair of months for a receiver to wrap up a liquidation.
What is future for the residence?
Stow Mayor John Pribonic explained there’s eager desire in the Stow-Glen property, which is in a prime place in close proximity to browsing and other services about halfway between Stow’s city center and Kent.
He mentioned about 15 developers have attained out to the town inquiring about the residence.
It is not very clear regardless of whether the builders hope to restart a retirement group like Stow-Glen or do a thing else with the assets on condition Route 59, he said.
“Usually, a developer will do the job with a business and then carry a system to the town,” Pribonic mentioned. “But listed here builders were being achieving out to the town.”
Now that a receiver is in place, the city is directing developers there so Stow-Glen can get started its upcoming chapter. no matter what that may well be.