TUMWATER - A nearly 5-year-old bankruptcy case with ties to the former Olympia brewery is at or near its completion, and it appears that the case won't end well for creditors, according to court documents filed in the U.S. Bankruptcy Court for the Western District of Washington.
Court documents that authorize disbursement of funds show that creditors in the case will receive no money and that $71,749.60 will go toward the administrative costs of the bankruptcy.
At issue is a Chapter 7 bankruptcy case filed in December 2006 in which creditors who were owed money by a company called All American Bottled Water Corp. forced it into involuntary bankruptcy to try to recover those funds. All American and its principal, L. Eric Whetstone, acquired the former Olympia brewery after borrowing money from a California-based lender, then set out to bottle water at the former plant.
That plan never materialized, and soon Whetstone and his association with the brewery property were embroiled in controversy.
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Michael Hitt, a trustee for the bankruptcy case, could not be reached Friday, and Mark Bruun, a principal of a Portland-based contractor called Lorentz Bruun Co., also could not be reached.
Lorentz Bruun was hired to do work on the brewery after All American bought the property. The contractor is the bankruptcy’s largest creditor, owed about $2.77 million. Other large creditors that won’t receive any money include the law firm Davis Wright Tremaine LLP, which was owed about $978,000, and the Thurston County Treasurer’s Office, which was owed $126,000.
That’s not to say Hitt hasn’t tried to recover money for the creditors in the bankruptcy case.
Since 2006, Hitt has filed six lawsuits against companies and individuals to recover funds in the case. He has sued Whetstone, a California-based lender called RE Loans LLC, Bank of America and a company called International Racehorse, court records show.
It wasn’t clear Friday whether the $71,000 that will be spent to cover administrative costs was raised from those lawsuits.
Rolf Boone: 360-754-5403 email@example.com www.theolympian.com/bizblog