Attorneys for Miami Beach entrepreneur Claudio Osorio Attorneys for Osorio and his wife, Amarilis, their creditors and Chapter 11 trustee Mark Meland told U.S. Bankruptcy Judge Robert Mark that they have agreed to a reorganization plan for Osorio’s construction firm, InnoVida Holdings.
Miami Beach entrepreneur Claudio Osorio appears to have narrowly avoided bankruptcy liquidation after some last-minute deal making. With little time to spare, Osorio reached a tentative deal with his reditors and the trustee in charge of his company to avoid having his personal and business Chapter 11 bankruptcy cases converted to Chapter 7 liquidations.
Attorneys for Osorio and his wife, Amarilis, their creditors and Chapter 11 trustee Mark Meland told U.S. Bankruptcy Judge Robert Mark on Tuesday that they agreed to a reorganization plan for Osorio’s construction firm, InnoVida Holdings.
The plan as negotiated would “achieve superior economic results for the creditors in Chapter 11 than what can be achieved in a Chapter 7,” according to Miami attorney Michael Budwick, who represents Meland.
Mark set a Sept. 15 deadline for the reorganization plan to be formally filed. Otherwise, Mark could still convert the cases to Chapter 7 liquidations.
Meland had asked Mark in May to convert the cases, asserting in court filings that Osorio “siphoned” millions of dollars from InnoVida to subsidize a lavish lifestyle. The trustee also blamed InnoVida’s troubles on Osorio’s “mismanagement.”
Budwick said during Tuesday afternoon’s hearing that Meland still believes those allegations to be true, but after about six lengthy meetings with attorneys for Osorio and his creditors, they determined reorganization “is a plan that we can support.”
Also during Tuesday’s hearing, Mark approved a request by Osorio’s attorney, Geoffrey Aaronson, to change the procedure for selling Osorio’s Star Island mansion. Originally, broker Jill Eber of Coldwell Banker Residential Real Estate was to be retained as the listing agent to sell the property. Now, the 15 Star Island Drive residence will be auctioned through Pompano Beach-based Fisher Auction. Eber will work with Fisher to coordinate the auction.
“To achieve the fair and best price, this is the way to go,” Aaronson said.
Interest from potential buyers of the nine-bedroom, nine-bathroom mansion has been strong, he said. But multiple offers made recently for the home have since been withdrawn.
“There have been discussions of significant [sale prices], but the buyers are disappearing at the last minute,” Aaronson said. “The property has been shown on a daily basis … [but] there have been too many stumbles along the way.”
Osorio faces a breach of contract complaint from Denver oil executive Thomas H. Morgan, who had a contract to buy the mansion for $10 million. In the complaint, Morgan asked Mark to award him $1.5 million and “reasonable attorney’s fees, court costs and interest.”
Another deal involving Osorio, the $500,000 sale of most of the assets of InnoVida, has closed, Budwick said Tuesday. The buyer is an affiliate of Inepar, a Brazilian telecommunications, energy and manufacturing conglomerate.
The Osorios filed for Chapter 11 bankruptcy protection in March. The filing came after Miami-Dade Circuit Judge Valerie Manno-Schurr awarded developer and former lobbyist Chris Korge a $4 million judgment.
Korge had sued the Osorios and InnoVida Holdings, to recover money he invested in the firm beginning in 2008. Osorio was chief executive officer of InnoVida, which promised to build thousands of homes in earthquakeravaged Haiti.
They were never constructed. He founded the company, a manufacturer of fiber-composite panels used in home construction, in 2007.