Bankruptcy dismissalBy Peter Wagner
sought in Kailua
Trustees in the Chapter 11 bankruptcy of Capital Resources International are seeking to dismiss the case, saying the Kailua company showed no promise of reorganization, or liquidation.
"There were no assets we are aware of to liquidate to pay creditors," said Curtis Ching, U.S. Trustee in the case. "There was really nothing there to reorganize."
Capital Resources, which has no employees or income, claims to have contracts valued at $275 million to clean up oil spills in the former soviet republic of Azerbaijan. The company, with affiliate company Trans Oceanic International, reportedly hosted potential investors with free lunches served daily at its headquarters at Kailua Town Center. About two weeks ago, Capital Resources was evicted from Kailua Town Center, a commercial complex on Hekili Street, owing about $240,000 in promised improvements to the property under its 10-year lease. The company has since relocated to farm property in Waimanalo.
Attorneys for Capital Resources say the company will not contest the bankruptcy dismissal.
Capital Resources, operated by Norman F. Frank, filed for bankruptcy in January on the day $180,000 in back rent was due on the Kailua Town Center property. The action forestalled an eviction order obtained last year by landowner Kaneohe Ranch Co.
The motion to dismiss the case notes that Capital Resources filed no monthly operating reports and offered no accounting of its source of income. "The debtor apparently has made significant payments to its landlord which has delayed the landlord's enforcement efforts, but there has been no disclosure of where this money came from," says the trustee's motion. Frank yesterday could not be reached for comment.