Bankrupt real-estate magnate, Michael R. Mastro, 85, has had a guardian appointed to represent him in his bankruptcy filing as his mental acuity has been lowered since he suffered a fall in his Palm Springs home, as reported by The Seattle Times.
Mastro has been so incapacitated by severe head injuries that his wife, Linda, filed an affidavit from his neurologist requesting that a guardian be appointed to protect his interests.
The appointment was approved by U.S. Bankruptcy Judge Marc Barreca on March 4.
After the fall Mastro was in a coma, and since then, the doctor stated in the affidavit, he is no longer competent enough to handle his own affairs.
The neurologist, Dr. Nina MawMaw, said, “It is not possible to predict with any medical certainty when or whether Mr. Mastro will regain part or all of his pre-accident mental acuity.
Mastro was considered Washington’s most prolific real-estate developer and lender before he was forced into bankruptcy in the beginning of July 2009.
Mastro’s debts, primarily unsecured by property or other collateral, are at an excess of $570 million.
A longtime friend, and business associate, has been found to have no claim on the proceeds from the sale of Mastro’s former Medina waterfront mansion per Judge Barreca. By ruling against one or two, per court-appointed trustee, Gayle Bush, Barreca insures that hundreds of other creditors will be able to receive small amounts from the sale.
After expenses the sale of the mansion in 2009 netted $8.35 million.
Terry Durst, a developer from Palm Springs, contended that the house was used as collateral for a $10 million loan he gave Mastro. As Durst’s name doesn’t appear on any legal documents filed in King County in regards to the mansion, both Trustee James Rigby, and Barreca, agreed that he had no claim to the $8.35 million.
Rigby stated that the deal between Durst and Mastro was part of a scheme – which Mastro had denied – just to keep some of Mastro’s assets out of the hands of the majority of creditors.
Durst pressed forward, stating that he had a document, with Mastro’s signature, that gave him a secured interest in the mansion. Rigby then argued that the signature was a forgery.
From the beginning of the bankruptcy case, Rigby, in representing the unsecured creditors, has held fast to the notion that the Mastro mansion is decidedly the single-most largest asset – the sale of which would allow the most payback to the most people.
The distribution of funds to the unsecured creditors will be paid after both Rigby’s legal, and accounting, teams are paid. Court papers say that Rigby’s teams are owed over $2.7 million.
Another businessman, of Monaco, has also claimed proceeds from the sale of the mansion. His claim is for $1.3 million.
Rigby stated that both men are allegedly part of the same scheme.
Durst’s attorney is now claiming that Mastro’s bankruptcy will cause his client to lose his home, and file for bankruptcy as well.
Considering a personal or business bankruptcy? Before you file, you must first contact a bankruptcy lawyer to protect your interests.