A bankruptcy court judge has declined to set aside the controversial sale of a 15-acre tract by I-75 that bankrupt millionaire Toby McKenzie maintains is worth as much as $2 million - not the $2,500 that was paid for it.
However, Judge Shelley Rucker did modify the terms of the sale. In a 20-page opinion, she said the wording "free and clear of the liens of Citizens Bank" should be removed from the document.
Richard Banks, attorney for Mr. McKenzie, had argued that Trustee Kenneth Still made a mistake when he allowed the sale to auto dealer Nelson Bowers to proceed. He said Mr. McKenzie would be willing to pay $100,000 for it, instead of the $2,500 price paid by Mr. Bowers.
Citizens Bank had loaned money to an entity holding the property at Exit 20. The loan on Nov. 22, 2002, was for $1,018,223. Citizens has a claim for $817,106 in connection with the loan.
Attorney Banks had maintained that the value of the property far exceeds the amount owed the bank on it.
Judge Rucker noted that Mr. McKenzie initially did not protest the sale. She said the time to do so included a timeframe in which he had made substantial progress in recovering from a serious illness and was involved in his business affairs.
She said, "The court finds that debtor's medical condition in the fall of 2009 was not an excuse for failing to object to the sale motion or to seek reconsideration of the sale order."