Judge wants more information on Boise Place investor

Progress in the Boise Place bankruptcy case now depends on the disclosure in court of financial information on a new investor who hopes to redevelop the long-delayed tower project at the heart of Boise’s downtown, the judge handling the case said today. U.S. Bankruptcy Court Judge Jim Pappas agreed with creditors during a hearing today that a disclosure statement filed by Gary Rogers’ firm, Charterhouse Boise Downtown Properties, does not contain enough information about investor Robert E. Plummer who claims in court documents that he will put up money to develop the property if Charterhouse’s bankruptcy plan is approved.

During a court recess on Wednesday, Rogers and some of the case’s largest creditors worked out a deal to privately share some of that financial information. However, Pappas said he wants some of the information to be made public to protect the interests of the smaller creditors in the case, who will have a chance to vote on Charterhouse’s bankruptcy plan but may not have lawyers to participate in the private discussions.

“I’m still concerned about those who don’t have enough money on the table to afford expensive counsel,” he said.

The parties will return to court for a hearing on May 22. Charterhouse must file an amended disclosure statement that includes more information about Plummer’s financial wherewithal.

In a separate hearing on Wednesday, Pappas rejected a motion to dismiss the bankruptcy case by creditor Rick Peterson, who once owned and tried to develop the site before selling it to Charterhouse. Peterson has since sued Charterhouse, claiming the company violated a clause in the sales agreement that would have allowed him to repurchase the property.

Peterson’s lawyer, Charles Robinson, said the bankruptcy was filed in “bad faith,” only to prevent the property from being turned back over to Peterson.

Pappas rejected that argument and said the vast majority of bankruptcy cases are filed to avoid foreclosures and property seizures.

“It’s a classic Chapter 11 case to forestall foreclosure by a major creditor,” he said.

Overall, Charterhouse owes $3.7 million to secured creditors – $2.8 million to Robert Capps, who purchased a loan Charterhouse defaulted on – and $8.6 million to unsecured creditors – $7.6 million of which is held by Peterson, according to the disclosure statement.

Under Charterhouse’s plan, all the secured creditors would be paid in full as soon as the bankruptcy plan is approved and finalized by the court, except for ISG Architects, Charterhouse’s architect for the project. ISG would receive $260,000, half of what it asked for.

The unsecured creditors, including Peterson, would receive just 25 percent of what they are owed. They would be paid in installments over a seven-year period.