HOUGHTON — A Limited Liability corporation created by the founder of the Moyle Construction Company in Houghton has filed for Chapter 11 Bankruptcy protection.
Marquette Bankruptcy Attorney Dane Bays told ABC10 tonight he wants to make it clear that the Moyle Construction Company itself has not filed for bankruptcy, and the construction company is now owned by one of Moyle’s children.
Bays said the filing has no impact on any ongoing operations. The bankruptcy involves one of over 33 limited liability corporations created by the construction company’s founder, Thomas Moyle.
Limited Liability Corporations are called LLCs. The LLC which is the subject of the current bankruptcy is solely a real estate holding company, it does not operate, and has no employees. The bankruptcy involves a piece of land that is part of the Moyle Construction Company compound and uses the same address.
Bays blames the chapter 11 filing on one of the bank creditors, that he says is being obstinate and demanding immediate repayment of the loan.Bays said that creditor, Associated Bank of Milwaukee “may have its own financial issues because its not common for a bank to unexpectedly call an entire loan.” According to Bays, the loan is fully collateralized, the payments are current, and haven’t been missed since 2004.
Filed in U.S. Bankruptcy Court in Marquette, the chapter 11 process allows the LLC to restructure its finances and maximize the return to its creditors. The paperwork was filed Thursday and shows that the LLC has just over $3.5 million in liabilities, with $2.5 million being mortgages with Northern Michigan Bank and Trust. Most of the remainder is a mortgage with Associated Bank of Milwaukee. Moyle’s LLC claims $1.9 million in assets.
A meeting of creditors is scheduled for December 3 in Marquette. ABC10 will have more on this on Monday, and you can see some of the chapter 11 paperwork filed in Marquette using the .pdf link below.