Thursday, August 19, 1999

Troubled Kailua firm
gets eviction papers

By Peter Wagner


Capital Resources International, a Kailua company seeking investors in an oil-reclamation deal in Azerbaijan, has been served with eviction papers at its Kailua Town Center headquarters.

Yesterday's action came after months of wrangling over unpaid rent and lease obligations at the nearly vacant commercial complex.

The eviction, originally sought by landowner Kaneohe Ranch Co. in January, was put on hold when Capital Resources filed for Chapter 11 bankruptcy. The company has been in bankruptcy since Jan. 11, when $180,000 in overdue rent was to be paid under an agreement with the Windward landlord.

Stanley Kanetake, attorney for Kaneohe Ranch, yesterday said the eviction is immediate but could take several weeks to effect. "This is a waste of a very valuable asset," said Kanetake of the 100,000-square-foot shopping complex on Hekili Street. "The property has not been maintained."

Capital Resources is one of six companies headed by Norman F. Frank at Kailua Town Center. None of the companies has employees or a source of income other than personal loans, according bankruptcy court records. Frank could not be reached for comment.

The Office of the U.S. Trustee, which oversees cases in U.S. Bankruptcy Court, last week filed a motion seeking to dismiss the Capital Resources bankruptcy or convert it to a Chapter 7 liquidation.

Under Chapter 11, a company may continue to operate under protection from its creditors while preparing a plan to reorganize and repay its debts. But no such plan has emerged, or appears likely, the trustees said in the filing.

The Aug. 13 filing notes that Capital Resources has filed no income or general excise taxes. Nor has it filed monthly operating reports as required of Chapter 11 debtors, or otherwise accounted for its income.

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