Gillioz trust files for bankruptcy

Last edited 4:12 p.m., Jan. 3, 2010

The Springfield Landmarks Preservation Trust has filed for bankruptcy on the Gillioz Theatre and adjacent Netters Building to avoid foreclosure from note holder Guaranty Bank.

The trust filed for Chapter 11 reorganization Dec. 30 after negotiations failed with Guaranty Bank, according to the Springfield News-Leader.

The "Save the Gillioz" fund had managed to raise $200,000 of the needed $500,000 in community donations to ward off the $3.5 million loan amount bringing on the foreclosure, but the bank wouldn't accept the lesser amount, according to the article.

The bankruptcy filing had the effect of stopping the foreclosure.

Chapter 11 bankruptcy allows a certain amount of time for a business to reorganize its financials.

In this case, the trust has to submit a reorganization plan by April 29, according to the article.

The Springfield Landmarks and Preservation Trust was served foreclosure sale notice on Dec. 11 for the Gillioz Theatre and the Netters Building by Guaranty Bank. They were given a Dec. 31 deadline to keep from the buildings from being foreclosed upon. On Dec. 15, the trust laid out its fundraising goals, asking for aid from the community.[[In-content Ad]]