Sheriff’s Sale Scheduled for Former Chesapeake Recycling Facility

The building that formerly housed a Winamac business that filed for Chapter 11 bankruptcy protection in late 2011 is up for sheriff’s sale. Alliance Bank holds the mortgage on the former Chesapeake Recycling facility at 1600 S. U.S. 35. The bank has called four promissory notes in the amount of $723,174.74, according to court documents. Pulaski Circuit Judge Michael Shurn also granted the bank’s request for an additional $9,223.25 in attorney’s fees, bringing the total to $732.397.99. The property is valued at $500,000, according to the bankruptcy filing, with an additional $200,498 in personal property also listed as assets. The sale is set for Wednesday, Aug. 7 at 10 a.m. EDT at the Pulaski County Justice Center.

Chesapeake Recycling also defaulted on a low-interest business loan obtained through the Pulaski County Revolving Loan Fund in 2004. The company borrowed $175,000 to buy equipment and apparently stopped making payments on the loan at the end of 2008, leaving a balance of $155,000. Pulaski County officials did not realize the funds had not been repaid until Chesapeake filed for bankruptcy in early 2012. As a result, the county’s lien on the company’s personal property had expired. Last November, the Pulaski County Commissioners filed a lawsuit against Jerry R. Howe, Jr. and Scott Roudebush of Winamac seeking to recoup their losses plus reasonable attorney’s fees. However, no court dates have been set in that matter, and the last filing in the Pulaski Circuit Clerk’s office was in January of this year when the defendants filed their responses to the complaint.