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Date of Issue: July 20, 2006

GSR declares bankruptcy

bankrupt pic
No war of the roses
The sales trailer formerly used by embattled GSR Development LLC for its Villa Rosa subdivision on South Bay Boulevard in Anna Maria has been empty for several months, but the city presently has no plans to initiate a code enforcement action against the company to have the trailer removed. The model home in the background has been completed, but no certificate of occupancy has been issued by the city. GSR is presently facing more than a dozen lawsuits and mortgage foreclosures and filed for bankruptcy July 13. Islander Photo: Rick Catlin

Financially embattled GSR Development LLC - once considered the leading developer of Island real estate by industry professionals - filed a voluntary bankruptcy petition in Tampa Federal Bankruptcy Court last week, gaining protection from the numerous lawsuits, mortgage foreclosures and other legal actions filed against it the past five months.

The bankruptcy petition, however, failed to list all the debts of GSR and the company indicated in its application that information will be supplied to the court at a later date. GSR principals Robert Byrne and Steve Noriega did not file for personal bankruptcy, according to the court.

The petition was assigned to Judge K. Rodney May, with Sarah Wiener as trustee for the case.

GSR did file a document showing its 20 largest unsecured creditors, headed by well-known Island businessman Kent Davis, who formerly owned the Siam Garden Resort in Anna Maria.

Davis is owed $600,000, according to court documents, while Patricia Hart of New Smyrna Beach comes in second at $535,500.

Others in the unsecured creditor category are a number of Island residents, including Melvin and Carol Yudofsky of Key Royale in Holmes Beach, who are owed $441,667, GSR said. Another Key Royale resident, Merritt Fineout, is owed $48,686, while Key Royale resident Karen Day also makes GSR’s unsecured creditor list at $45,000.

Bradenton Beach residents M.T. and Dorothy Owens are owed $45,967, and Cynthia Graeff, also from Bradenton Beach, has a $27,500 claim. Island businessman Christiaan Huth is due $25,364, according to court documents.

GSR also owes its 2005 taxes to Manatee County in the amount of $196,768.

The total amount of unsecured debts for the 20 largest creditors listed by GSR was $2,927,074, while the amount of secured debts owed to various GSR properties will apparently top the $10 million mark when GSR files those documents.

GSR listed a total of 115 creditors and estimated its assets at between $10 million and $50 million. Estimated debts were also between $10 million and $50 million, the petition said.

GSR’s two major projects on Anna Maria Island were the Villa Rosa gated-community project on South Bay Boulevard in Anna Maria and the Rosa del Mar condominiums in Bradenton Beach.

Only the model home at Villa Rosa has been built and star NBA player Theo Ratliff has filed a notice that he has a contract to purchase that house for $2.5 million. A certificate of occupancy for the model home has not yet been issued by the city.

No construction at Rosa del Mar has taken place and Bradenton Beach has withdrawn the building permit.