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Christian school files for bankruptcy

2013-02-08T00:00:00Z 2013-02-08T00:22:43Z Christian school files for bankruptcyBy SANJAY TALWANI Independent Record Helena Independent Record
February 08, 2013 12:00 am  • 

Helena Christian School, faced with foreclosure of a large parcel of land and a $1.5 million debt, filed for bankruptcy protection last week.

The school, operating on leased property on Canyon Ferry Road, said in a statement that the filing in U.S. Bankruptcy court in Butte will not affect day-to-day operations.

“The school will continue to serve its students,” the statement said.

Superintendent Greg Page, citing the advice of legal counsel, had no additional comment.

The school’s directors signed a resolution authorizing the bankruptcy filing Nov. 15 — the same day district judge signed a decree of foreclosure on a 326-acre parcel near the Scratchgravel Hills.

School backers had hoped to finance the school through development of the property, but historic mining waste on the property stalled those plans.

Mountain West Bank, which had lent school supporters about $1.5 million with the land as collateral, demanded the school pay the loan down by $1 million after a reassessment of the property following the real estate downturn — even though, the school said in court filings, it had kept up to date on its pay-ments to the bank.

The bank filed a lawsuit demanding payment of the full debt in November 2010.

The Chapter 11 bankruptcy filing does not include specific financial information, but says the school has both assets and liabilities between $1 million and $10 million.

The Jan. 29 filing cancelled a sheriff’s sale of the property that had been scheduled for Jan. 31.

The school has about 150 students in Kindergarten through 12th grade.

Reporter Sanjay Talwani: 447-4086, sanjay.talwani@helenair.com. Follow Sanjay on Twitter @IR_SanjayT.

Copyright 2015 Helena Independent Record. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(2) Comments

  1. lianedane
    Report Abuse
    lianedane - April 30, 2013 2:37 am
    Let me share a little bit information about bankruptcy. According from what I've read, the concept of bankruptcy was first introduced in 1800 and only applied for individuals.If an individual was suddenly find himself unable to pay his debts, there would be no legal options available for him to discharge his debts and start fresh. Instead he would probably face criminal charges and end up in prison. In fact it was the harsh punishment which led the US to adopt the bankruptcy code that we have in place today.
  2. steeline
    Report Abuse
    steeline - February 11, 2013 8:54 am
    The school should wait until the land goes up for sale as a Bank Owned Property. They probably could buy it back at a substancial discount. Might have to use a third party buyer though. Some one will buy the land and they will develope it. The mining issues can and will be cleared up.

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THE IR ED BEAT REPORTER

Alexander Deedy covers education and business for the Independent Record. Send news tips and feedback to alexander.deedy@helenair.com. Follow Deedy on Twitter at @IR_adeedy.

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