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Date of Issue: February 20, 2008

Some unsecured GSR creditors denied claims

Nearly $6 million in unsecured claims against bankrupt GSR Development LLC have been denied by the federal bankruptcy court.

In a series of rulings in early February, the court upheld GSR’s objections to those claims on the basis that the claimants had not responded to GSR’s objections by the court-imposed deadline.

Locally, the creditors whose claims were tossed aside include Lapensee Plumbing, Island Lumber, Crowder Brothers Hardware, the Bradenton law firm of Kirk Pinkerton P.A., and Bruce and Carole Douglas of northwest Bradenton. The Douglas claim was for $200,000, while Kirk-Pinkerton had $13,500 in legal fees owed it by GSR.

Efforts to determine how a law firm with the reputation and expertise of Kirk-Pinkerton would miss a deadline regarding $13,500 in fees were unsuccessful.

Attorneys Mark Barnebey and Scott Rudacille of Kirk-Pinkerton indicated they would have the firm’s attorney who handles GSR issue a statement, but no response was received prior to press deadline.

The firm represented GSR during its site-plan dispute with Anna Maria in 2002-03.

The total amount of unsecured claims in the GSR bankruptcy at one time was more than $4.6 million, although Island businessman Kent Davis, with $600,000 in claims, was able to recover all but $135,000 through legal actions separate from the bankruptcy.

Davis, along with Island residents Mel and Carol Yudofsky, have forced Byrne into involuntary bankruptcy in an effort to recover more of their investments with GSR. The Yudofskys have approximately $385,000 invested with the now bankrupt company.