Sale of SIST gas stations cancelled: No reason given by bank attorneys

Shawano Leader/September 30, 2011

Attorneys have called off a foreclosure sale of three gas stations in Shawano owned by a subsidiary of the Samanta Roy Institute of Science and Technology.

The Shawano County Sheriff's Department confirmed Thursday morning that attorneys for Wausau-based creditor Integrity First Bank, which filed the foreclosure proceedings, sent the department a fax cancelling the sheriff's sale scheduled for October 13.

The Sheriff's Department said the fax did not give a reason for the cancellation.

The sale was scheduled to include all three People's Express gas stations owned by SIST subsidiary Midwest Oil of Wisconsin. The stations are located at 1381 East Green Bay Street, 716 South Main Street and 1206 East Green Bay Street.

Integrity filed suit against Midwest Oil in December 2008, alleging default on a $1.3 million mortgage on the gas stations.

Attorney Nathaniel Krautkramer, who represents the bank, did not return a message left by The Shawano Leader.

The Shawano County Clerk of Court's office said nothing had been filed in the case as of Thursday morning to indicate there had been satisfaction of the debt.

The gas stations had previously been set for a sheriff's sale in 2009, but that action was stalled when SIST and six subsidiaries filed for Chapter 11 bankruptcy protection in Delaware.

Those petitions were dismissed in September 2009 and were subsequently appealed to the U.S. Third Circuit Court of Appeals.

However, SIST and three of the subsidiaries withdrew from the appeal, only to re-file new bankruptcy petitions.

Midwest Properties and Midwest Oil of Minnesota LLC withdrew in August of last year. U.S. Acquisitions and Oil Inc. withdrew in January and SIST withdrew in March.

The subsidiaries remaining from the original March 2009 petition were Midwest Oil of Wisconsin LLC, Midwest Oil of Shawano LLC, and Midwest Hotels and Motels of Shawano LLC.

In June, a federal appeals court upheld the dismissal of their original Chapter 11 bankruptcy petitions.

In August, SIST and its subsidiaries agreed to a dismissal of all bankruptcy cases that were still pending. The dismissal prevented them from filing any new bankruptcy petitions for a year.

SIST and its subsidiaries own a number of Shawano area properties and businesses. Several of those properties have been the subject of foreclosure action in Shawano County Circuit Court that has been delayed due to the various bankruptcy filings.

As of Thursday, an October 5 sheriff's sale was still scheduled for two apartment buildings that SIST subsidiary Midwest Properties of Shawano had been purchasing under a land contract from Robert and Shannon Broder. The property is already in receivership.

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