SIST subsidiary files for bankruptcy: Properties mostly in Minnesota

The Shawano Leader/April 7, 2011

A newly formed subsidiary of the Samanta Roy Institute of Science and Technology has filed for Chapter 11 bankruptcy in the state of New York, according to court documents.

Yehud-Monosson USA Inc. was incorporated in New York in December and was subsequently merged with another SIST subsidiary, Midwest Oil of Minnesota, LLC, according to court filings, making the new company the owner of all Midwest Oil’s assets and liabilities.

Yehud-Monosson then filed for bankruptcy March 23, claiming liabilities of more than $6.2 million. The company, described in the bankruptcy filing as being in the business of owning and operating convenience store properties, also claims assets of nearly $7 million, mostly properties owned in Minnesota.

According to the filing, one of those properties in Oakdale, Minnesota, was scheduled for a foreclosure sale March 24.

SIST and its subsidiaries own a number of Shawano area properties and businesses, including three gas station/convenience stores in the city. Several of those properties have been the subject of foreclosure action in Shawano County Circuit Court that has been delayed due to various bankruptcy filings.

The new bankruptcy filing states the petition was prompted by "a mass conspiratorial campaign of aggressive discrimination, predatorial activities of lenders, and invasion of privacy of the business affairs of this Debtor."

The U.S. Trustee’s office filed a motion Tuesday objecting to the New York petition and seeking to have the case transferred to the U.S. Bankruptcy Court in Minnesota, converted to Chapter 7 or dismissed.

The Trustee’s Office maintains the new filing is the latest in a two-year effort to stave off foreclosure of property the debtor owns in Minnesota.

Midwest Oil had filed four bankruptcy petitions over the course of the last two years, according to the trustee’s brief, including petitions in both Minnesota and Delaware. The most recent case was dismissed in Minnesota Bankruptcy Court on March 9, the brief states.

Meanwhile, a hearing was scheduled to be held in federal court today on a motion to consolidate the bankruptcy filings of SIST and two of its subsidiaries in Delaware Bankruptcy Court.

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