Richmond Christian Center bankruptcy issue being resolved
Jeremy M. Lazarus | 9/25/2015, 6:05 a.m.
The Richmond Christian Center has had to put off celebrating its emergence from bankruptcy after nearly two years under court supervision.
The 300-member South Side church has been told some issues still need to be resolved before the U.S. Bankruptcy Court can approve RCC’s reorganization plan and allow it to leave bankruptcy court protection.
RCC expected to have the plan approved Sept. 9 in federal court. However, an attorney associated with the church’s court-appointed trustee, Bruce H. Matson, has notified the church and the court it could be at least another month before the plan is finalized.
The attorney, Christopher L. Perkins, who, like Mr. Matson, is a partner in the LeClairRyan law firm, told Judge Keith Phillips that there are still some items to resolve before the final plan can be presented.
That includes having creditors vote on the plan and settling a government claim to interest on previously unpaid taxes on employee benefits, Judge Phillips was told.
Another issue involves the resolution of a claim from an auction company over money it is due from handling the 2014 sale of the RCC property that ultimately fell through.
Another church, Mountain of Blessings Christian Center, was the high bidder on that sale, but Mr. Matson ended up rebuffing the bid. Mountain of Blessings has recovered the $196,000 it put up to show its intention to purchase.
The auction company, Richmond-based Motleys, believes it is owed about $200,000, or well above the $78,000 that Mr. Matson believes the company should be paid for handling the auction. Both sides have agreed to mediation to gain a resolution.
The delay also gives RCC more time to raise $200,000 to fund the costs of the reorganization, including paying LeClairRyan and a financial firm for services in developing the plan and overseeing the church’s finances.
Rhonda Hickman, chair of RCC’s three-member governing board, said the church has secured about $150,000 in donations and pledges, but welcomes the extra time to raise the balance.