More discouraging news from the Standard-Examiner, concerning River Project "moneyman" Gadi Leshem's Cover-All, Inc. Chapter 11 bankruptcy matter. Ace Reporter Schwebke reports this morning that Mr. Leshem has filed a declaration with the Bankruptcy Court, announcing his intention to shut down most of his national operation:
OGDEN — A financially troubled California carpet-installation company owned by local developer Gadi Leshem is closing nearly all of its facilities — including one in Ogden.In an earlier article, we speculated that Mr. Leshem might be preparing the way for a straight Chapter 7 style liquidation:
Bankruptcy records from Leshem on behalf of Cover-All Inc. indicate the company plans to maintain only two of its 23 facilities nationwide.
“It is the debtor’s intention to keep only its Las Vegas and Chatsworth (Calif.) facilities open,” Leshem wrote in a declaration filed last week in U.S. Bankruptcy Court for the Central District of California.
Could it be, gentle readers, that Mr. Leshem contemplates converting his Chapter 11 Reorganization into a straight Chapter 7 Liquidation, thereby allowing Mr. Leshem to jettison his floundering floor company, and then apply his energy full-time as a real estate developer? There's plenty of big money to be made by Gadi and his purported investor "partners," provided they have the financial juice to weather the current recession and move their project(s) forward. Enough money, we suspect, for Gadi to satisfy his obligations to his most pesky and formidable creditors, the State of California and the IRS, and to put a little dough in his own pocket. The rest of his creditors he can probably throw overboard via a Cover-All, Inc. Chapter 7.On the basis of the new information provided by Mr. Schwebke this morning, this appears to be exactly where Mr. Leshem's erstwile Chapter 11 "Reorganization" is now headed. As of now, his bankruptcy prodeeding is looking more like a straight Chapter 7 "Liquidation." Expect a formal motion for a Chapter 7 "conversion" very soon.
And for those lumpencitizens anxiously awaiting some palpable action on the languishing River Project, it would probably be advisable to not hold your breath. By folding up the bulk of his national operation, Leshem will obviously be deprived of much of that revenue stream that he milked from his Cover-All business for the past several years, in order to acquire his fifty or so Ogden River Project properties.
As for the pool of mysterious un-named investors who now represent Leshem's River Project investment capital fall-back position, Leshem has already hinted that his River Project development timeline may very well be measured not in months, but years:
Overall market conditions, including the softening of the real estate market in recent months, will probably have some effect on the pace of our partners’ development progress,” he said in the statement. “Because we are still quite early in what we have always described as a multiyear process, the actual impact of the current slowdown may be relatively minor. It is quite possible that market conditions, along with investor and consumer confidence, may have strengthened substantially by the time we are further along in our plans.Chalk it up as "another fine mess" that the visionary Boss Godfrey's "gotten us in."
If you enjoyed that Junction Dirt-pile which remained untouched and idle in the heart of Ogden's downtown, for the better part of 44 months during Boss Godfrey's second mayoral term...
Expect more of the same.
The world blogsphere is stting on the edge of its seat, awaiting our gentle readers' ever-savvy comments on this latest news development
Have at it, O Gentle Ones.
14 comments:
Like so many other frauds and impostors whose true colors this recession has exposed, Gadi's nakedness is no longer "speculative."
But for those of us whose bullshit detectors were ringing off the hook from the first moment Gadi bellied up to Ogden's bar, this isn't news. It's news only to Elder Godfrey and his gaggle of yes-men. Gadi has forever smelled Ogden as a vulture smells carrion.
Apologies to English professor and Godfrey apologist Cavendish for the mixed metaphors.
As I always say, "You never know who is swimming naked until the tide goes out." I'm always saying that.
It's too bad that when the tide does go out, it doesnt take all of the rotten turds such as Godfrey and the bunch with it. Instead it leaves them all baking in the hot sun giving off a stench that ruins everyones trip to the beach.
Well, if Mr. Lesham's river project properties downtown are going to be mostly a vacant lot for a few years now, why not have Hizzonah ask him to lease them back to the city for eight months, throw down some grass seed, put up a few goals and turn the lot into four or five public soccer fields for the coming spring, summer and fall. Lots of available recreation, at no charge, for downtown young folk, and older ones too. It will bring people downtown. Won't cost much [say a dollar a year on the lease. Lesham owes Godfrey. Time to collect.]. And it will be a hell of a lot better than yawning acres of vacant lot until the next snow season.
It could work. Not a long term solution, but it could be a low cost/high benefit to city residents short term one.
Just a suggestion....
Rupert Hitzig: Gadi is a man with a remarkable ability to get things done.
Home Depot: The guy can't do anything. Who needs this guy?
Gadi went bankrupt because he drinks all the profits and the rest is history.
Oh ye of little faith I feel so sorry for you.
I know in my heart of hearts that Gadi will snatch a miracle out of the dark skies and single handily create a magnificent oasis along the Ogden river. You naysayers will all be standing behind the wrought iron fences looking in with your sad long faces at the wonderful feast being served up to the winners and true believers while you pick away at your miserable, stringy and foul tasting crow sandwiches.
You just don't get it, with a name like Gadi you got to know that he ain't just gad'n about.
off subject for a second. dropped a buddy off at the frontrunner today and looked at the railcar diner work that godfrey said would only cost 35 thousand. it looks like you can take that number and multiply it by 10. seems too that they had to dig up a major part of the parking lot to lay a sewer and water line to the diner car. when all is said and done ill be surprised if the city doesnt have a half mil in to the deal.
city council should ask for an accounting.
A river project will benefit Ogden City.
When properly planned, they really enhance a city. I love riding a bike with the kids on a summer day, down a leisurely path along side of a river.
The funny thing, we believe, is that this could be built by boy scouts and local elders quorums, using bake sale money.
It is the kind of project that needs a little local flair and ambition, not millions of dollars.
Hell, we could clean up and install a one mile long trail with little more than a flame thrower, a shovel, and some gravel/pavement.
We love this town.
RJS:
Ah.... you need to get out more. In Ogden. The trail [paved biking and walking path, actually] along the river --- officially called "the Ogden River Parkway" --- is already in. You can ride along it now. The "River Project Development" refers to the land on the south bank almost all the way to the Ogden Temple, and on the n. bank back for a shorter distance. The trail itself is done and open, and almost completed all the way to Riverdale [not quite] from the mouth of Ogden Canyon. And each year, in the spring, there is a community Ogden River clean up, supported by local groups [Sierra Club, etc.] Hope to see you there for the next one. [Bring gloves. Some of the stuff people drop along the bank and into the river is nasty times two.]
No one lives more downtown than we do. If we did, we would live right inside Union Station.
We love the riverwalk, as it is.
When we are in town, on any warm afternoon, we can be seen riding with children close behind, all over Ogden.
Nice to see someone else cares about this dogeared old town.
disgusted
the closest residence to union station that i know is the one featured in the paper this week. was that you sitting on the couch in the picture. the article on the renovation of the building on two bit street.
If the picture was of an Atlas of a man, rippling musculature, piercing eyes, steel chin, holding a balance scales in one hand and a picture of John Galt in the other?
Perhaps.
rj
hey my mirror plays tricks on me too.
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