Pratt loses bankruptcy
Failed to execute CGI : Win32 Error Code = 3A federal bankruptcy judge has granted the estate of Joe Fought relief from a stay of foreclosure against Sisters accountant Arthur C. F. Pratt.
The ruling on September 19 is the final blow to Pratt's attempt to retain ownership of the large, two-story office building at the corner of Hood and Main streets in Sisters that Pratt built using $1.6 million in loans from Fought in 1993 and 1994.
Pratt also borrowed another $600,000 from Fought to purchase a historic home in Bend.
Unable to meet the monthly payments of $23,484.82, Pratt defaulted on the loans after paying nearly $300,000 in interest.
On March 19, 1996, the estate filed to foreclose, asking that the properties be sold and the proceeds used to satisfy the loans and that Pratt be liable for any deficiency between the sale and loan amounts.
On June 17 Pratt filed in federal court for bankruptcy, which provided an
automatic stay of the foreclosure. The lifting of the stay allows the
foreclosure to proceed on the commercial property in Sisters.
There was no request for relief from stay on Pratt's home in Bend, according to attorney for the estate.
Preferring not to be named, the estate's lawyer said the judge found that since Pratt demonstrated the office building would have negative cash flow over the 10 year period of the reorganization, Pratt's continued ownership of the property was not necessary for Pratt to meet his debt obligations.
Pratt told The Nugget that he did not plan to appeal the judge's ruling. In a letter to the editor in this week's Nugget Pratt said he had been given an eviction notice.
As to his plans for the future, Pratt said "I am going to have to find something temporary while I decide what to do, long-term."