Friday, December 11, 2009

Henry S. Miller Cos. agrees to go into bankruptcy

Real estate company still has to decide whether to file Chapter 7 or 11

Legendary commercial real estate management firm Henry S. Miller Cos. has agreed to enter bankruptcy, according to an attorney who forced the Dallas-based firm into court and court records.

“They are in bankruptcy, and this is just the next procedural step of the process,” said Marc Stanley of Dallas’ Stanley, Mandel and Iola, which represented three creditors who filed an involuntary bankruptcy petition July 7 to force the issue.

At a Dec. 3 hearing on the involuntary petition, attorneys for Henry S. Miller Cos. agreed to the demands made by the creditors. The creditors said they were owed nearly $2 million collectively.

Henry S. Miller now has to decide whether to try to convert the case to a Chapter 11 reorganization, Stanley said.

The involuntary case was filed as a Chapter 7 liquidation, meaning a judge could force the company to dissolve in order to satisfy its debts.

“We will try to move it back to a Chapter 7,” Stanley said Friday.

The firm’s namesake founder died Dec. 5 at age 95.