SIST founder, members of board among creditors in bankruptcy

Shawano Leader/March 25, 2009

The founder of the Samanta Roy Institute of Science and Technology, Inc. and his deceased daughter are listed among the unsecured creditors SIST says it owes money, according to documents SIST filed in U.S. Bankruptcy Court.

SIST and several of its subsidiaries filed for Chapter 11 bankruptcy protection earlier this month, a few days before three of its gas stations in Shawano were scheduled for a foreclosure sale.

SIST and its subsidiaries are in the midst of several court cases over alleged unpaid debts of more than $4 million, according to court records.

But the list of unsecured creditors filed in Delaware federal bankruptcy court shows SIST and its subsidiaries have more than $13.3 million in claims from various persons and entities.

Among them is SIST founder and president Avraham Cohen - formerly R.C. Samanta Roy - who is owed $457,400, according to the list.

His daughter, Deborah Cohen - who died in June 2007, according to her death certificate - is listed as being owed $616,000.

SIST CEO Naomi Isaacson is listed twice - owed $102,177 individually and another $111,000 in conjunction with Laureen Ballinger of Minneapolis.

Laureen Ballinger - who is a member of the SIST Board of Directors - and Deanna Ballinger are jointly owed $495,000, according to the list.

Deanna Ballinger was on the management list for Midwest Properties of Shawano prior to the subsidiary’s incorporation in Delaware, according to records from the Wisconsin Department of Financial Institutions. She is individually listed among the unsecured creditors as being owed $166,225.

Other SIST board members listed as creditors include Jill and Randy Yungerberg, of St. Paul, who are listed as being owed $291,600, and Michael Goldstein, who along with Asher Goldstein is listed as being owed $44,701.

Petitions for Chapter 11 bankruptcy were filed by SIST and six subsidiaries, including Midwest Oil of Shawano, LLC; Midwest of Oil of Wisconsin, LLC; Midwest Oil of Minnesota, LLC; Midwest Properties of Shawano, LLC; Midwest Hotels and Motels of Shawano, LLC; and U.S. Acquisitions and Oil, Inc. Chapter 11 is typically used for business reorganization, according to the U.S. Bankruptcy Court web site.

A bankruptcy judge in Delaware - where SIST and its subsidiaries reincorporated last month - held a hearing Friday, but has not yet issued a decision on whether to accept the Chapter 11 bankruptcy petition.

Another hearing is scheduled for April 6.

Along with the initial bankruptcy petitions, SIST and its subsidiaries each filed lists of secured creditors - those with payments owed where the debt is backed by some type of collateral.

That list includes mostly financial institutions, as well as two oil companies and several parties with whom SIST and its subsidiaries have entered into land contracts.

The list does not show any dollar amounts owed for the secured creditors.

SIST and its subsidiaries subsequently filed a combined list of unsecured creditors. The court documents did not provide an explanation for why several of the same names and entities appear on both the unsecured and secured lists.

The largest claim on the unsecured creditors’ list is $3.1 million owed Bill Egan, doing business as Egan Oil Co. of Anoka, Minn.

Other large claims on the list include Southwest Guaranty of Houston, with a claim of $2.1 million; Gulf Coast Bank and Trust of New Orleans, with a claim of $1.77 million; and AKJ Development Corp. of Key Colony Beach, Fla., with a claim of $1.5 million.

To see more documents/articles regarding this group/organization/subject click here.