The Herald Bulletin

Evening Update

Faith

August 20, 2013

Attorneys lay out repayment plan in Madison Park Church of God bankruptcy case

INDIANAPOLIS — A meeting of creditors in the Madison Park Church of God Chapter 11 bankruptcy case was held Tuesday.

No creditors showed up at the hearing, which was held at the U.S. Courthouse on East Ohio Street in Indianapolis, but that was expected, said debtor attorney Jerry Ancel.

The purpose of the meeting was to lay out a plan for how the church will repay its creditors at A and B levels of priority. The next step, according to Ancel and church business administrator Fred Spaulding, is to hear a vote from the creditors, who will either approve or deny the proposed plan.

Church officials said in June they were filing for voluntary Chapter 11 reorganization after coming up short for a $5.8 million balloon payment toward a loan it took out in 2007.

The initial loan was for nearly $17.5 million, to develop over 200 acres near exit 226 on Interstate 69, where the church had moved from Scatterfield Road. The money was used to fund construction of the church’s community life center, city streets, water delivery and storm water management infrastructure.

The loan was financed via a bond issue managed by a California firm, and called for $95,000 monthly payments, which escalated in the years leading up to a lump-sum balloon payment of nearly $6 million, due July 31, 2012.

But as Ancel confirmed on Tuesday, shortly after the loan was issued the U.S. economy took a nosedive into one of the greatest downturns in the country's history, and the value of real estate plummeted. According to church officials, the value of the properties was cut roughly in half and none of them sold.

The new repayment plan is not dependent on the sale of the church’s properties. But if they do sell, that money could be applied toward paying down the loan.

Ancel broke the repayment plan into A and B bond holders, depending on the risk the creditors took when they agreed to finance the church. He said the A bond holders will received payments and interest upon commencement date of the plan. It contains fixed monthly payments and is expected to be paid back within 20 years.

Text Only
Faith
  • Grief reconciliation workshop series offered First United Methodist Church will offer a five-week workshop series about grief and mourning to help bring comfort and encouragement to participants in their grief journey.

    April 19, 2014

  • FEA - HB0419 - PTP support group - 20 A new kind of support Crystal Everhart’s daughter was only 16 when she announced she was pregnant. The soon-to-be grandmother wasn’t totally sure what to do or who to talk to. At one point, she felt herself start to slip into depression. Nearly three years later, she’s trying to make sure other Madison County grandparents won’t feel the same way.

    April 18, 2014 2 Photos

  • Davis, Verna mug Verna Davis: Seeking the grown-up version of an Easter basket I'm still enough of a kid to like Easter baskets. I like to fill them and I like to receive them. But this year, I think I want a different kind of Easter basket. A grown-up Easter basket.

    April 18, 2014 1 Photo

  • Church News: April 19 A compilation of church news items as published in the Saturday edition of The Herald Bulletin.

    April 18, 2014

  • NWS - HB0408 - Crash Sperrys 2 Family, friends bid farewell to Jesse Sperry

    The fussing of 10-day-old Autumn Marie Sperry seemed to coincide with the beginning of the funeral service for her father, Jesse Sperry, whose body rested just a few feet away. More than 200 friends and family members gathered at Edgewood Baptist Church this afternoon to pay their respects to Jesse, who was killed April 6 in a traffic accident on Indiana 32.

    April 16, 2014 2 Photos

  • 'Dinner in the Dark' set for April 26 Christ Lutheran Church will again host the “Dinner in the Dark,” benefiting Anderson Outreach Center for the Blind.

    April 15, 2014

  • FEA - HB0415 - buddy bags - 03.jpg Local partnerships feed school children during weekends

    Deanna McNeese says it is hard to listen to children talk about being hungry when school is not in session.

    April 15, 2014 1 Photo

  • NWS - HB0408 - Crash Sperrys 2 Mother of victim: Son was my hero

    "He's my hero, and he always will be." That’s how Janelle Cox described her 23-year-old son, Jesse Sperry, who was killed in an April 6 traffic accident.

    April 15, 2014 1 Photo

  • Whitefish shortage causing Passover meal problems

    A shortage of whitefish in the Great Lakes region resulting partly from the winter deep freeze is coming at an inconvenient time for Jewish families: the Passover holiday, when demand is high because it's a key ingredient in a traditional recipe.

    April 14, 2014

  • Pope poses for 'selfies' after Palm Sunday homily

    Pope Francis, marking Palm Sunday in a packed St. Peter's Square, ignored his prepared homily and spoke entirely off-the-cuff in a remarkable departure from practice. Later, he continued to stray from the script by hopping off his popemobile to pose for "selfies" with young people and also sipping tea passed to him from the crowd.

    April 13, 2014

Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
More Resources from The Herald Bulletin