Thank you for visiting The Islander Newspaper Online.

We are currently updating our website to provide you better service and function.
If you would like to access the new site, please, click here: The Islander Newspaper

Sorry for any inconvenience. Our new site and service will resume shortly.

Web Master

The Award Winning & Best News on Anna Maria Island, FL Since 1992

"The Award Winning & Best News on Anna Maria Island, FL Since 1992"

Monday, Sep, 1, 2014
Florida Press Assn. Award-Winning Web Site
Home Latest News Weather Sports Real Estate Classifieds Island Guide Islander Store

 SECTIONS

 • 

Main News

 • 

Classifieds

 • 

Opinions

 • 

Streetlife

 • 

Calendar

 • 

Fishing

 • 

Sports

 • 

Real Estate

 • 

Obituaries

 • 

Weather

 Features

 • 

Cortez Cook Off: The Results

 • 

Anna Maria Island Bridge FDOT replacement bridge

 • 

National Hurricane Center (Atlantic)

 • 

Advanced Search

 • 

I love AMI

 • 

Mystery Story

 • 

Fishing Laws

 Classifieds

 • 

Classifieds Page

 • 

Place An AD

 • 

Items for Sale

 • 

Garage Sale

 • 

Estate Sale

 • 

Announcments

 • 

Lost & Found

 • 

Pets

 • 

Transportation

 • 

Boats & Boating

 • 

Fishing

 • 

Kids 4 Hire

 • 

Help Wanted

 • 

Health Care

 • 

Services

 • 

Lawn & Garden

 • 

Landscaping

 • 

Home Improvement

 • 

Business Opportunities

 • 

Rentals

 • 

Real Estate

 Weather

 • 

Today's Forecast

 • 

10 Day Forecast

 • 

Today's Tides

 • 

Emergency e-mail

 • 

Storm Watch

 Archive

 • 

News Archive

 • 

2009 Top Notch Gallery

 • 

2008 Top Notch Gallery

 • 

2007 Top Notch Gallery

 • 

2006 Top Notch Gallery

 • 

2005 Top Notch Gallery

 • 

2004 Top Notch Gallery

 Useful Links

 • 

Island Links

 • 

i.wed

 • 

Islander Store

 • 

About this Site

 Contact Us

 • 

Islander Store

 • 

Subscribe

 • 

About Us

 • 

e-mail us

Story Tools

Date of Issue: April 19, 2007

Rejected buyer rips into GSR restructuring officer

To the surprise of no one involved with Island real estate and the collapse of bankrupt GSR Development LLC, none of the company's Island properties sold before the court-ordered March 16 deadline. But it wasn't for lack of offers.

David and Jane Freeman of Duluth, Ga., said they submitted bids on four of GSR's properties to GSR restructuring officer William Maloney, offers that were flatly rejected by Maloney.

In fact, claimed David Freeman, Maloney was "nearly impossible to deal with" on the offers.

"We looked at all Island properties. We did our homework based upon the current Island real estate market and made our offers based upon our sense of what the market is today," he said.

But Maloney replied through Freeman's real estate agent that he "didn't consider the offers to be reasonable."

He also advised the agent that Freeman shouldn't base his offers on the current Island real estate market because there really was "no market during the first quarter of '07 [sic]."

Maloney commented that he is "not as highly motivated as you may think, just because the company is in bankruptcy." Maloney, although employed by GSR principals Robert Byrne and Steve Noriega, claimed that he represents "the interests of creditors and other parties of interest. Unfortunately, debt levels and equity in the property are issues I need to consider."

When Freeman indicated he was going to write to the bankruptcy court, Maloney responded that he has "sole authority to act on behalf of the debtor," but that Freeman and his real estate firm were welcome to "approach ‘the court'" or others that you think may be sympathetic to your cause. Unfortunately, in issues like this, it's a little like Santa Claus mail."

In other words, said Freeman, don't expect an answer.

But offers for GSR properties have been few and far between. Maloney has asked federal bankruptcy court Judge K. Rodney May to allow him to hold a public auction of some of GSR's properties using an international auctioneering firm.

"What's the point of that?" said Freeman, who has written May to request that he not approve the auction, but consider his offers.

"It would be very surprising to us if auctioning these properties would fetch prices for net amounts that are materially above our offers," Freeman said. Given the repairs needed on the four properties, the current market conditions and the associated risks, Freeman contends his offers are fair.

 As of April 16, May had not yet issued a ruling on the motion to hold a public auction.

Freeman was surprised to learn that all of GSR's properties are heavily mortgaged and none of his offers would pay off the first mortgage on any of the properties. He was also unaware that Maloney has been offered a $125,000 bonus if he restructures GSR so that all creditors are paid 100 percent of their claims.

The unsecured creditors of GSR have $6.1 million in claims against the company, while the total bankruptcy is $46 million.

Freeman said that if the court rejects his plea and decides to put GSR's properties up for public auction, he likely won't participate because the properties would have a "reserve price" well above what he considers they are worth.

Efforts to reach Maloney for comment on Freeman's allegations were unsuccessful.

The four properties Freeman offered to purchase, along with the GSR asking price and his offer, are:

Address Asking price Offer price

  • 506 74th St. $795,000 $355,000.
  • 604 Foxworth Lane $725,000. $455,000.
  • 518 Key Royale Drive $1.7 million. $800,000.
  • 407 74th St., Unit A $625,000. $415,000.

Have your say:

No comments for this page. Feel free to be the first

Username:

Contact:

(email or url)

Subject:

Your View:

Please enter the security code below:

security  

Get breaking news

Follow the Islander on TwitterBecome a fan of The Islander on Facebook

Sign up to receive breaking news alerts via e-mail. We'll send you a notice when the news and classifieds appear online every week, before the print edition hits the streets.

Click here for Gulf oil spill updates related to Anna Maria Island.

Historic Anna Maria City Pier Plank Walk

Put your name, your message, your memorial on the Historic Anna Maria City Pier prior to the Pier Centennial Celebration! And join the fun!

CLICK HERE for Stoltzfus e-mails and related court documents.


FREE Island
Vacation Guide:
get it here

Cortez Cookoff

Click here for 2010 Cortez Cookoff Winner and recipes

To advertise here, please
visit our rates page
or contact us at:
sales@islander.org
Phone: (941) 778-7978
Fax: (941) 778-9392

Back to top of Page

Home | Weather | Real Estate | Classifieds | Archives | Contact | Island Links
Islander Store | Subscribe About this site | Classifieds Page | Place an Ad
For Sale | Garage Sales | Announcements | Lost & Found | Pets | Transportation
Boats & Boating | Fishing | Kids for Hire | Help Wanted | Health Care | Services
Lawn & Garden | Landscaping | Home Improvement | Business Opportunities | Rentals | Real Estate

Our Privacy and Copyright Statements © 1992 - 2009, The Islander