Liborio ordered into Chapter 7; PACA sanction lifted

07/27/2012 03:01:00 PM
Coral Beach

The judge ordered the bank to coordinate with PACA claimants valuation of perishable goods and personal property disposition. By Sept. 15 the bank, other debtors, PACA claimants and the trustee must file a report for the disposition of personal property in the case.

"All proceeds from the liquidation of the personal property, net of all out-of-pocket costs incurred for security and asset disposition, shall be held by the bank in a segregated account pending resolution of any disputes concerning priority rights and interests...," Russelll said in his order.

In the bankruptcy case, John Alejo is listed as president and general counsel for Liborio Markets Inc., Alejo Grocers Inc. and Liborio Market No. 5. There are several Liborio markets in California, Nevada and Colorado and other corporate entities that carry the Liborio name, but in court filings, the Alejo family contends those and other various business entities with assets and are not related.

The road to resolution

American Produce contends in its civil complaint that John Alejo, Enrique M. Alejo and Enrique J. Alejo own and control Liborio Markets Inc., Liborio Holding Co., Liborio Markets and individual stores Liborio Market Nos. 7, 8, 9, 10 and 11.

“Adherence to the fiction of the separate existence of the entities, distinct one from the other, would permit an abuse of the corporate privilege and would promote injustice,” states American Produce's complaint.

As the allegations flew in the civil cases, John Alejo’s statements about his company’s attempts to reorganize in the Chapter 11 case came under fire from Banco Popular.

In a declaration to the bankruptcy court July 23, Alejo asked for a 30-day extension to file the reorganization plan the court had ordered due July 24. In that declaration he states Liborio decided to close five of its weakest performing stores and convert them to Chapter 7 liquidation status.

Alejo also said Liborio had been working diligently on transactions to aid with the reorganization, including the sale of real property, furniture and fixtures for $36.5 million to SP Grand Resources.

Objecting to Liborio’s request for the 30-day extension to file the reorganization plan, Banco Popular stated in a July 23 filing that Alejo’s declaration was not true.

“…The debtors have not made any real progress toward reorganizing. All they have been able to do is manage to keep the doors open while digging themselves further into debt…” the bank stated in its objection.


Prev 1 2 Next All


Comments (2) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Marcelo Hidalgo    
Los Angeles CA  |  August, 06, 2012 at 02:35 PM

Wow! it's a ;itty that more and more companies are going belly up. It seems that it's Liborios Markets turn, now. God help us all. Thanks!

    
August, 16, 2013 at 09:26 AM

The economy had nothing to do with Mr. Alejo and Liborio Markets' decline and failure. It was karma.

Join the conversation - sign up for FREE today!
FeedWind
Feedback Form
Leads to Insight