Another Scott Coles Company in Bankruptcy - PhoenixCEOCFO.com

Another Scott Coles Company in Bankruptcy

SM Coles LLC filed for Chapter 11 bankruptcy on October 31, 2008. SM Coles LLC owned all of the stock in Mortgages Ltd., which had filed for Chapter 11 bankruptcy in June 2008, three weeks after the CEO and owner, Scott Coles, was found dead. At the time of its filing Mortgages Ltd had near $910 million of investments in its loan portfolio and 1,000 investors/creditors. Another company related to the Mortgages Ltd was Radical Bunny which made almost $200 million in loans to Mortgages Ltd. Three of its investors have filed a petition for an involuntary Chapter 7 liquidation in October 2008 but a motion has been filed to convert it to a Chapter 11, reorganization.

The Arizona Republic reported that SM Coles LLC also owns much of Scott Coles' personal and business-related real estate, including Mortgages Ltd.'s headquarters at 4455 E. Camelback Road, the company's former office building at 55 E. Thomas Road, a small office building and adjacent property on Central Avenue north of Indian School Road, a condominium at Esplanade Place and a home in the Biltmore Estates, according to property records.

In the filing the company reported assets worth an estimated $50 million to $100 million and owes $10 million to $50 million in liabilities.

John Laub is the Chairman of the Phoenix CEO-CFO Group.

1. "Late Lending Executive's Holding Company Files for Chapter 11." Andrew Johnson. The Arizona Republic. November 1, 2008.

2. "Radical Bunny Investors Push for Bankruptcy." Andrew Johnson. The Arizona Republic. October 10, 2008.

3. United States Bankruptcy Court for the District of Arizona. The Honorable Charles G. Case II, Presiding. Phoenix Calendar Monday, November 3, 2008. Radical Bunny, LLC
CH: 11 "Emergency Motion for Relief from Stay filed on behalf of Mortgages Ltd."

4. "Mortgages Ltd's BK Mess will Affect Phoenix for Years--Suns Owner to Help?"
http://www.phoenixceocfo.com/content/articles/2008-07/mortgages-ltd's.bv