Developer Verna files Chapter 7

Charlotte Business Journal: May 27, 2009

Longtime Charlotte developer Pete Verna has filed for Chapter 7 liquidation, according to a filing with the U.S. Bankruptcy Court here.

Verna has 617 unsecured creditors, assets of between $1 million and $10 million and liabilities of $10 million to $50 million, the filing states.

“Debtor estimates that, after any exempt property is excluded and administrative expenses paid, there will be no funds available for distribution to unsecured creditors,” the filing says.

Verna’s voluntary petition could be dismissed because it is incomplete, according to a separate court notice filed by the clerk of court.

Last year, Verna lost control of The Park, his unfinished residential condo project uptown, after defaulting on a construction loan.

The lender that foreclosed on the property BB Syndication Services Inc. — a subsidiary of Bankers’ Bank in Wisconsin — bought the building for $14.2 million in a foreclosure auction in December.

Earlier this month, the Charlotte National Building Condominium Owners’ Association acquired Verna’s offices at 428 E. Fourth St. for $32,847.78.

The association was the sole bidder on the office condo during a foreclosure auction, and the upset period expired with no takers.

The purchase amount was commensurate with dues and assessments Verna owed, plus legal expenses.

The foreclosures were the latest in a string of dozens of court filings, lawsuits and mechanic’s liens for unpaid bills filed against either Verna & Associates or company founder Verna.

Verna was the creator of the Charlotte National Building Condominium Owners’ Association in the late 1980s. He built the uptown office building by using the salvaged facade and glass rotunda of the now-demolished First Citizens Bank Building.