Taylor Bend property owners file for bankruptcy
Published 3:10 pm Wednesday, August 4, 2021
Nelson Brothers Taylor Bend 2, LLC. filed Chapter 11 bankruptcy through the Mississippi Northern Bankruptcy Court Wednesday, the same day the property was scheduled for public auction due to foreclosure.
Residents at the 80-unit complex have raised concerns recently about utility service interruptions and issues with management due to financial concerns with the property owners.
The bankruptcy case was filed by the company’s attorney Craig Geno at 10:43 a.m. — just 33 minutes before property trustee and lawyer John D. Mayo took to the Lafayette County Chancery Court steps to auction the property.
Mayo, who said later he had no knowledge of the filing at the time, opened the auction with a bid of $7.6 million from North American Savings Bank, which held the mortgage on the Taylor Bend apartment complex.
The sale quickly closed with no bidders on the property. Since, the property owners filed for bankruptcy prior to the sale, the auction was annulled and the sale did not go through.
Although a more expensive alternative to filing Chapter 7 bankruptcy, filing Chapter 11 bankruptcy allows the organization to reorganize, pay off debts and investors and become a profitable organization.
The bankruptcy filing does little to ease concerns among complex residents, whose water and internet services were disconnected by utility providers in July due to lack of payment by the complex owners.
Although water service has been restored, residents have told city officials they are dealing with a litany of ongoing management issues, including broken air conditioning units, moldy washing machines, low-quality water and uncut grass.
Many are worried about what to do with the money they’ve deposited into the complex’s resident portal for upcoming leases, particularly if the owners are filing for bankruptcy.
“I personally feel for [the Taylor Bend apartment residents], but it’s in the hands of the bankruptcy court now,” said Mayo.
Geno could not be reached for comment this afternoon.