Broadmoor Valley owners file Chapter 11 bankruptcy
MARSHALL — The company that owns the Broadmoor Valley manufactured home park has filed for Chapter 11 bankruptcy, according to filings in U.S. bankruptcy court.
Schierholz and Associates, Inc., the owners of Broadmoor Valley, filed for Chapter 11 in Colorado on Jan 18., court records said. A Chapter 11 bankruptcy is often used to reorganize a business.
A notice filed Tuesday in bankruptcy court set date of March 16 for a status conference with Schierholz and Associates. The notice said Schierholz and Associates would need to be prepared to inform the court of their reasons for filing bankruptcy, and to discuss intended plans for reorganization.
Part of the Chapter 11 filings for Schierholz and Associates included a list of the business’s creditors with the largest unsecured claims. A lawsuit by the Minnesota Attorney General’s Office was on the list as a contingent, unliquidated and disputed claim. The Attorney General’s Office sued the Broadmoor Valley owners in 2021, alleging that Schierholz and Associates had failed to maintain the streets and mobile home park to state standards, and that residents were charged unlawfully high fees for late rent payments.
The Minnesota Attorney General’s lawsuit against Schierholz and Associates, and Paul Schierholz, is still ongoing. Motion hearings in the case are set for March 1 and March 15, according to Lyon County District Court records.
Court trial dates for the lawsuit are scheduled in October.