The bankrupt owner of marinas in Pasadena and Annapolis is negotiating to sell both properties as part of a plan to repay more than $7 million in debts.
During a meeting yesterday at the U.S. Trustee's office in Baltimore, marina owner Dennis C. Blaeuer confused both creditors and their attorneys with a tangled web of partnerships and corporations he created to run White Rocks Yacht Club in Pasadena and Spa Creek Yacht Club in Eastport.
The developer, who filed for protection from creditors last month in U.S. Bankruptcy Court, said he has offers for Spa Creek, a 50-slip marina on Burnside Street, and White Rocks, a 400-slip yacht club on Rock Creek.
White Rocks also includes seven houses, several businesses and the Windows on the Bay restaurant.
Blaeuer assured Murray Siegel, senior bankruptcy analyst overseeing the creditors' meeting, that he would meet his deadline under Chapter 11 of the U.S. Bankruptcy code to file repayment plans for both properties -- with or without sale contracts.
Under bankruptcy law, Blaeuer has 120 days from the date he filed each case to arrange a repayment plan.
He lists debts of $6.9 million on the Pasadena marina, in a Sept. 13 motion on behalf of White Rocks Limited Partnership. In a separate motion Sept. 5 on behalf of Burnside Limited Partnership, he lists $1.4 million in debts on Spa Creek.
Creditors and their attorneys, who fired two hours of questions at Blaeuer about his business dealings, appeared unconvinced about Blaeuer's intentions and exasperated when he failed to answer questions to their satisfaction.
"What we want to know is where the money went," said attorney Harvey M.
Lebowitz of Frank, Bernstein, Conaway & Goldman, who sharply questioned Blaeuer about whether he used White Rocks income for other purposes.
The Baltimore law firm represents federal regulators who are court-appointed guardians of First Federal Savings Bank of Annapolis, White Rocks' major creditor. Blaeuer owes the bank $5.1 million on a loan he used to buy White Rocks seven years ago, said James C. Olson, an attorney with the firm.
Federal regulators took over the thrift earlier this year when it failed to meet new capital standards.
Blaeuer blames the bank for his problems at White Rocks. He says he has poured money into the restaurant, added 100 slips to the original 300 and watched annual profits grow from $165,000 in 1984 to nearly $500,000 in 1989.
In late 1988, Blaeuer turned to private investors to raise money for improvements to the slips and restaurant. That moved slowly though, and he took the bank up on an offer to re-finance the project.
But the bank never disclosed that it was under federal supervision, Blaeuer said. After he'd spent money, the bank failed to come through with the loan.
"Had they kept those commitments, all of those people would have been paid," said Blaeuer, who owes money to 40 White Rocks' creditors. "We were stuck with a pile of bills and a project that couldn't be completed."
Blaeuer has signed a letter of intent with a buyer who has offered $6.5 million. The transaction must be approved by federal regulators, he said.
In the case of the $1.3 million Spa Creek, which he bought in April 1989, Blaeuer planned to upgrade the slips and sell them in packages that would include clubhouse memberships.
But Annapolis officials refused to approve the project. Annapolis Federal Bank backed out of the financing, Blaeuer said.
Now, Blaeuer has found a serious buyer, and the bank has approved the offer, he said.
Blaeuer's financial woes also have led to a bank foreclosure on a Talbot County boatyard and forced him to sell Annapolis property where he'd proposed a controversial yacht club.