Trustee says liquidate – creditors oppose

Tuesday, an official committee comprised of 7 of the 20 largest unsecured creditors, will learn the fate of their plans to create a new company to manage the performing assets of Lydia Cladek, Inc.; now in the hands of the Chief United States Bankruptcy Judge of the Middle District of Florida.

Lydia Cladek has been behind bars in federal custody since being indicted by a federal grand jury for operating an illegal Ponzi scheme with investor’s money — all the while living “high on the hog” from the proceeds.

Although the non-performing (non-paying) loans of the St. Augustine-based automobile loan financier were sold at auction by the Chapter 11 Trustee on August 19, 2010, at the request of the Committee, the loans that are still performing have been retained in the bankruptcy estate until the judge could hear arguments that the estate could be worth many times its liquidation value through creation of the proposed new company.

Historic City News will report the judge’s decision when it is released on Tuesday.

Photo credits: © 2011 Historic City News contributed booking photograph