Bankruptcy Mystery at New York Wine Storage Business
As a Brooklyn, New York bankruptcy attorney, I have seen many people climb out from under the extraordinary weight of extreme debt through the help of bankruptcy. Once in awhile, however, a story will grab my attention.
A one-time financial advisor and publisher of rare art prints in New York has been seeking protection from creditors in bankruptcy court for over a year. He has been doing so while trying to save his business and 270,000 rare and valuable wine bottles that he stores for financiers, high-powered litigators, and real estate investors.
The problems began at the cellars when water poured into the warehouse during Hurricane Sandy, according to a recent New York Times report.
Today, his firm is no longer running, and his company, WineCare Storage, is insolvent. Now, many of the customers are demanding their wine back—including such powers as a former vice chairman of ExxonMobil and the government of Romania. What’s strange is the delayed return of the wines to their owners.
A day before a court-ordered inspection of WineCare, the owner filed for bankruptcy protection. Following the filing, 123 of his creditors, encompassing nearly all his clients, filed for claims—totaling over $18 million.
This case has all types of unusual elements. Some question whether the owner of WineCare really wants to establish the business or whether he is simply trying to cover up a disaster in the cellar caused by Sandy.
If you have questions about this bankruptcy case, feel free to contact our Brooklyn, New York office. Or, if you are considering filing for bankruptcy yourself, reach out to an experienced Brooklyn bankruptcy attorney today.