$138M??

[JohnH]

I'm not gonna post anything on this unless it's fresh. Lancaster online keeps regurgitating the same things over and over. The local conspiracy theories are abundant.

No updated cemetery photos?

This time it was a house he bought for his son in Lancaster.

What a scandal.

[the-real-steve]

No updated cemetery photos?

This time it was a house he bought for his son in Lancaster.

What a scandal.

Another tenant took over his former office building in Lancaster. Apparently, it was still fully furnished.

Heller is in the hole $800+ million.

[Ken]

This time it was a house he bought for his son in Lancaster.

What a scandal.

Another tenant took over his former office building in Lancaster. Apparently, it was still fully furnished.

Heller is in the hole $800+ million.

If he dug a hole $800 million deep then a whole lot of people gave him shovels and helped him out.

[JohnH]

What a scandal.

Another tenant took over his former office building in Lancaster. Apparently, it was still fully furnished.

Heller is in the hole $800+ million.

If he dug a hole $800 million deep then a whole lot of people gave him shovels and helped him out.

I think the bankruptcy trustee will be the one deciding how much dirt is left to fill the hole back up.

[the-real-steve]

It's been a minute.....

https://lancasteronline.com/news/local/ ... %20Reading

[the-real-steve]

Just read an article online that was published over the weekend. His lawyer is petitioning to allow him to pay his creditors over the course of ten years. He wants $3M to administrate it. And the real kicker? He only wants to pay 14 cents on the dollar back. Still have yet to hear where this money went. It is estimated he is over $800M in the hole.

[Ken]

Just read an article online that was published over the weekend. His lawyer is petitioning to allow him to pay his creditors over the course of ten years. He wants $3M to administrate it. And the real kicker? He only wants to pay 14 cents on the dollar back. Still have yet to hear where this money went. It is estimated he is over $800M in the hole.

Sounds like he is trying to avoid the appointment of a court bankruptcy trustee to take over all his business assets.

Somehow I doubt that offer is going to convince the court he is operating in good faith. "Pay me $3 million to pay off my creditors 14 cents on the dollar over 10 years?" Would you buy that if you were a judge? 14 cents on the dollar amortized over 10 years is actually more like 5 cents on the dollar at current interest rates.

[barnhart]

Heller is in the hole $800+ million.

Capitalism often has quite fanciful methods of evaluation. The investors who lost money in the Madoff scandal wanted the government to "bail them out" to the tune of $50 billion. Of course there never was $50 billion, the money they imagined to be theirs was just made up numbers of fictional returns. In the real world they only lost their initial investment.

[Ken]

Heller is in the hole $800+ million.

Capitalism often has quite fanciful methods of evaluation. The investors who lost money in the Madoff scandal wanted the government to "bail them out" to the tune of $50 billion. Of course there never was $50 billion, the money they imagined to be theirs was just made up numbers of fictional returns. In the real world they only lost their initial investment.

This sounds a bit different. In this case it sounds like the guy hugely inflated the value of his business holdings and then used those fake holdings as collateral to borrow millions of dollars. Also moving money around from one business entity to another in a game of musical chairs to make it look like he was worth more than he was. So the $800 million debt may be real (or largely real) but the businesses used to secure that debt are mostly imaginary or over-inflated in value. At least one part of that $800 million is loans based on fake collateral. The other portion is probably "investors" who got sold a bill of goods and unwisely invested money in his schemes.

Obviously that is all fraud. But also the entities that loaned him money are probably at fault too for not doing their due diligence and making sure that the collateral was secured. Also the people who gave him money out of greed and some naive notion that he had the magic sauce to beat the market. You don't dig a $800 million hole all on your own. He had lots of help it seems.

[JohnH]

Just read an article online that was published over the weekend. His lawyer is petitioning to allow him to pay his creditors over the course of ten years. He wants $3M to administrate it. And the real kicker? He only wants to pay 14 cents on the dollar back. Still have yet to hear where this money went. It is estimated he is over $800M in the hole.

Sounds like he is trying to avoid the appointment of a court bankruptcy trustee to take over all his business assets.

Somehow I doubt that offer is going to convince the court he is operating in good faith. "Pay me $3 million to pay off my creditors 14 cents on the dollar over 10 years?" Would you buy that if you were a judge? 14 cents on the dollar amortized over 10 years is actually more like 5 cents on the dollar at current interest rates.

2.6% of total assets is a pretty standard fee to administer a bankruptcy estate, as is taking 10 years to do it. Generally speaking those kind of assets will generate more income if there is more time to sell them versus a quick fire sale.

It would be up to any creditors to object. The bankruptcy trustee is already appointed but it is rare for them to administer cases this big. It’s almost always done by lawyers the creditors and debtor agree on.