Vero Fashion Outlets’ main creditor tries to tap owner’s family trust
November 6th, 2009 by TCPalm.comVERO BEACH — A high-level financial struggle over the troubled Vero Fashion Outlets now may reach into an owner’s family trust, court records show.
In early October the outdoor mall filed for bankruptcy in federal court, a move that halted a foreclosure lawsuit filed by the mall’s creditor, LNV Corp. of Nevada, in Indian River Circuit Court. LNV Corp.’s attorney Kenneth Curtin contends the mall defaulted on a $32 million loan for purchase of the 329,000-square-foot mall in 2007.
Now Curtin has filed a lawsuit asking for money from owner Irwin Tauber and his Tauber Family Trust, Tauber, of Bay Harbor, is a principal owner of the mall west of Vero Beach.
Curtin says the trust is personal guarantor of the loan.
During a foreclosure court hearing before the bankruptcy filing, Tauber’s wife, Laura Tauber, testified that the trust also has been affected by the economy’s downturn.
In 2008, the trust’s worth was estimated at $158 million, but she said “that has changed substantially.”
She didn’t elaborate.
The mall’s income has dropped off to the point the mall faces “serious issues that need to be addressed,” she said.
In the past few weeks, the mall announced the addition to a new tenant and the enlargement of one store. The new store is the Coach Factory Outlet.
“I’ve spent enormous time at the mall,” Laura Tauber said.
Elliott Jones, TCPalm.com
Tags: bankruptcy, foreclosure, laura tauber, lawsuit, vero outlet mall
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November 6th, 2009 at 10:35 am
Let’s see if I have this straight. They had $158,000,000 last year but it’s “changed substantially.” Let’s say they lost 2/3’s of their money so now they’re down to say $53,000,000. That would pay off the loan and still leave them adequate money for Pop Tarts and such. Maybe even enough for a trip to Burger King. I’m not usually on the side of banks and lawyers but it sure looks like they should have been able to at least make their payments.
November 6th, 2009 at 11:22 am
How is this a story? A business entity defaulted on a loan. The main owner of that entity, as trustee of his own personal trust, had his trust guarantee the loan. The bank is now collecting from the guarantor. This happens every day when a default occurs. That is why they have guarantors. Now, has that trust been “relieved” of all of its assets by the family in an attempt to avoid paying on the guarantee. For the Taubers sake I hope not. Fraudulent transfer laws are brutal.