231 N. Sangamon, Gibson City, IL 60936

Eric Janssen was appointed Receiver on March 3rd, 2017 100 miles south of Chicago in rural Ford County regarding a grain storing facility which had fallen into foreclosure. The facility was equipped with large silos, conveyer belts and large warehouse spaces. The borrower had been attempting to operate a business, while simultaneously leasing storage space to a company based in California.

Case Details:

  • 231 N. Sangamon, Gibson City, IL 60936
  • Foreclosure Case No 16 CH 34
  • Reference:  735 ILCS 5/15-1704(c) (West 2014)

As soon as the Receivership was in effect, the borrower was no longer permitted to operate from the facility, and only the tenant could continue their storage and shipping services (provided that they paid their agreed upon rent).

The complexity grew quickly as the Receiver found the property to be equipped with heavy machinery, some of which was secured by the note, as well as other equipment that had been leased from separate finance companies. It was imperative that the Receiver determine which equipment had been included with the note, and which equipment was leased through various lenders.

The Process

As it turned out, the equipment leases were also in default, and the Receiver received calls from the lenders to retrieve the equipment.
Once the Receiver resolved the equipment ownership issues, he moved on to the disposition of the asset. The Receiver requested the court for permission to market, list and sell the property, knowingly that any offer would need to be presented and accepted by the court.

The equipment which was collateralized by the note further complicated the sale. Ultimately the property and the collateralized equipment were conveyed separately to an out of state buyer.

The Resolution

The negotiating process took some time but eventually a deal was agreed upon and the offer was presented to the court. There were no objections by mortgagee or mortgagor and the sale of the property along with equipment was successfully completed.

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

Log in with your credentials

Forgot your details?