Kailua businessman
pays $220,000 of debt

By Peter Wagner
Star-Bulletin

Capital Resources International, a company in Chapter 11 bankruptcy over unpaid debts at Kailua Town Center, has made partial payment toward $460,000 in lease obligations on the commercial property.

In a temporary deal worked out with landlord Pacific Union of Seventh Day Adventists, Capital Resources on Friday paid $220,000 of the delinquency with $240,000 to be paid by June 18.

The company, one of seven operated at Kailua Town Center by Maunawili resident Norman F. Frank, claims to have contracts to clean up oil in the Far Eastern country of Azerbaijan. Capital Resources also says it is close to securing major financing for the deal from investors in New Zealand.

The $460,000 -- $220,000 in back rent and $240,000 in repairs to the property -- were due last month under an agreement reached in U.S. Bankruptcy Court. The company's January bankruptcy filing put off an earlier deadline to meet lease obligations stipulated in a civil lawsuit last year in which the church sought to evict Capital Resources.

Frank filed for personal bankruptcy in April to avoid eviction from his Mauawili residence, a property also owned by the Seventh-Day Adventist Church.

In a separate lawsuit brought by the church last year over nonpayment of rent, Frank agreed to purchase the property for $450,000 or leave by April 15.

In documents filed last month in federal bankruptcy court, Frank claims assets of $1,252,390 and debts of $850,000.

He lists the Maunawili property, at 1333 Lopaka Place, among his assets.

Frank's chapter 13 filing also shows $800,000 in loans to him from Trans Oceanic International Ltd., one of his ventures and sole source of revenue for Capital Resources.