Richmond Christian Center is nearing its release from bankruptcy.
A Southside church will have to wait a bit longer to be freed from bankruptcy.
The confirmation of Richmond Christian Center’s Chapter 11 reorganization plan was postponed for at least a month at a Wednesday federal court hearing that drew about 30 parishioners who had gathered in anticipation of celebrating the church’s emergence from bankruptcy.
The delay was requested by LeClairRyan attorney Chris Perkins, who represents Bruce Matson, the trustee overseeing RCC’s bankruptcy process.
Perkins told Judge Keith Phillips that they need more time to work out issues related to the balloting process for the church’s creditors to vote on the plan, an objection from the IRS related to interest the church owes, and a lingering dispute with local auction company Motleys Asset Disposition Group.
“I think the 30 days will allow us to button up the issues,” Perkins said.
Richmond Christian Center has been in bankruptcy for nearly two years.
Motleys contends it is owed about $200,000 in commission for holding an auction for RCC’s main church building at 214 Cowardin Ave. The auction found a winning bidder in the form of a Henrico church, but the deal to sell the building never materialized at the behest of the trustee. The process led to a short-lived lawsuit between the churches that was ultimately settled.
The trustee’s camp argues that Motley is owed about $78,000, and the two sides are now headed for mediation to resolve the dispute.
Filed July 8, RCC’s 42-page reorganization plan plots a path for it to refinance the debt on its main church building near Manchester, institute steps to draw in new sources of revenue – including leasing out some of its excess real estate – and add new leadership and procedures to better monitor its finances.
It calls for the church to be led by members Calvin Yarbrough, Rhonda Hickman and Raymond Partridge. They’re particularly charged with keeping watch over RCC’s business affairs.
The proposal also includes a plan for church members to raise $200,000 among themselves to help fund the administrative costs of the reorganization process. Those costs including paying LeClairRyan and financial analysis firm Protivity.
Perkins said the delay in the confirmation of the plan will give the trustee extra time to collect on judgements against various parties that wrongfully took money out of the bankruptcy estate, including the church’s founding pastor, Stephen A. Parson Sr.
It will also give church members more time to get closer to their $200,000 fundraising goal.
The confirmation hearing will be revisited, likely in October.
Yarbrough, Hickman and Partridge said after Wednesday’s hearing that the delay won’t dampen the excitement RCC’s congregants feel about getting back to business as usual.
Richmond Christian Center is nearing its release from bankruptcy.
A Southside church will have to wait a bit longer to be freed from bankruptcy.
The confirmation of Richmond Christian Center’s Chapter 11 reorganization plan was postponed for at least a month at a Wednesday federal court hearing that drew about 30 parishioners who had gathered in anticipation of celebrating the church’s emergence from bankruptcy.
The delay was requested by LeClairRyan attorney Chris Perkins, who represents Bruce Matson, the trustee overseeing RCC’s bankruptcy process.
Perkins told Judge Keith Phillips that they need more time to work out issues related to the balloting process for the church’s creditors to vote on the plan, an objection from the IRS related to interest the church owes, and a lingering dispute with local auction company Motleys Asset Disposition Group.
“I think the 30 days will allow us to button up the issues,” Perkins said.
Richmond Christian Center has been in bankruptcy for nearly two years.
Motleys contends it is owed about $200,000 in commission for holding an auction for RCC’s main church building at 214 Cowardin Ave. The auction found a winning bidder in the form of a Henrico church, but the deal to sell the building never materialized at the behest of the trustee. The process led to a short-lived lawsuit between the churches that was ultimately settled.
The trustee’s camp argues that Motley is owed about $78,000, and the two sides are now headed for mediation to resolve the dispute.
Filed July 8, RCC’s 42-page reorganization plan plots a path for it to refinance the debt on its main church building near Manchester, institute steps to draw in new sources of revenue – including leasing out some of its excess real estate – and add new leadership and procedures to better monitor its finances.
It calls for the church to be led by members Calvin Yarbrough, Rhonda Hickman and Raymond Partridge. They’re particularly charged with keeping watch over RCC’s business affairs.
The proposal also includes a plan for church members to raise $200,000 among themselves to help fund the administrative costs of the reorganization process. Those costs including paying LeClairRyan and financial analysis firm Protivity.
Perkins said the delay in the confirmation of the plan will give the trustee extra time to collect on judgements against various parties that wrongfully took money out of the bankruptcy estate, including the church’s founding pastor, Stephen A. Parson Sr.
It will also give church members more time to get closer to their $200,000 fundraising goal.
The confirmation hearing will be revisited, likely in October.
Yarbrough, Hickman and Partridge said after Wednesday’s hearing that the delay won’t dampen the excitement RCC’s congregants feel about getting back to business as usual.