Noted Real Estate Brokerage Company gets desperate to shun accusation

There were lots of speculations in the air of the identity of the person culpable for the recent debacles of the widely esteemed commercial real estate brokerage and auctioneer Sheldon Good & Co. However the recent annunciation of the company has brought to the fore a new development. According to company’s assertion, its nine operating entities had sought Chapter 11 bankruptcy protection and the debacles happened due to “improper actions” taken by its former chairman, Steven Good.

In this regard Company President Alan Kravets said in an affidavit included in the bankruptcy filing, it was after Steven Good’s Jan. 5 suicide, “debtors discovered that Mr. Good, without authority, had withdrawn substantial monies from the debtors’ operating accounts, calling it compensation, which left the debtor without reserves in the most difficult economic climate we have experienced in 20 years.” “The decrease in operating capital created by Steven Good’s misappropriation of monies magnified the effects of the current economic downturn and an overall decline in the U.S. real estate market.”

Nevertheless this desperate act of shunning accusation has given rise to new theories. Many are still skeptical and the bizarre silence of Alan Kravets and company’s bankruptcy attorney, Heidi Sorvino, who also declined to specify the amount of money involved, has intensified the same misgivings considerably.

As stated by Heidi Sorvino, the firm has secured $2 million in debtor-in-possession financing. “They have a ton of business in the pipeline,” she said. Under Chapter 11, a company is protected from creditors while it designs a plan to repay debt.

It has to be mentioned that in its filing with the U.S. Bankruptcy Court for the Southern District of New York, the company listed assets of $250,000 and liabilities of $4 million. The documents also let somebody see a negative net cash flow of $215,664 over the next 30 days. The two largest unsecured creditors listed were JPMorgan Chase Bank, with a loan of $650,000, and New York-based Miller Advertising Agency, with trade debt of $699,000.