Owners of Green Eyed Motors file Chapter 7 bankruptcy

Ken Amundson

FREDERICK — One of three cases filed against the now-closed Green Eyed Motors LLC of Frederick has moved ahead with court orders to attach assets and appoint a receiver, among other actions. 

Meanwhile, the owners of Green Eyed, Luke and Janine Walch of Erie, have filed for Chapter 7 bankruptcy and are seeking to sell their home at 692 Fossil Bed Circle in Erie.

Cases began to be filed against Green Eyed and its owners in mid-March when the landlord sought payment of overdue rent. That case is largely unchanged since filing.

An Oklahoma “floorplan” lender, which provides loans on cars in dealership inventory, also sued for nonpayment of loans and alleged that the dealership sold some vehicles “out of trust,” meaning they were sold, money collected from buyers but payments were not made to the lender. In these cases, the auto buyer would not receive a title, because the lender continued to hold it. This case also is largely unchanged since its filing.

The third case involved loans made by Flatirons Bank of Boulder. This case, filed March 21, alleged that a floorplan loan for $2 million had not been repaid. The bank sought writs of attachment and garnishment, which Judge Robert Gunning approved on April 6. The orders sought to prevent property that could be used to satisfy loans from being dispersed without knowledge of the court.

The judge also appointed a receiver March 29 to facilitate the other orders, to take charge of the assets, change locks, take charge of bank accounts, collect receivables and so forth.

Then on April 7, Luke Walch and his wife, Janine Walch, filed for Chapter 7 bankruptcy. In Chapter 7, a plan for repayment of debts is not filed. Instead a bankruptcy trustee gathers and sells nonexempt assets and repays creditors to the degree possible.

The bankruptcy filing lists assets of $1.227 million and liabilities of $3.212 million — $716,064 of the liabilities are secured. 

On April 10, the couple filed a motion to sell their Erie home for $887,000. The home is encumbered with liens totalling $584,327; $455,000 of that amount is owed to Flatirons Bank.

The bankruptcy court as of today had not acted on the request to sell the property.

The cases are:

In Weld County District Court, Skitzo Genesee LLC v. Green Eyed Motors LLC and Luke Van Walch, case number 2023cv30189.

Also in Weld County District Court, Floorplan Xpress LLC-OK v. Green Eyed Motors LLC, Luke Van Walch, Janine R. Walch, and Flatirons Bank, case number 2023cv30196.

In Boulder County District Court, Flatirons Bank v. Green Eyed Motors LLC, Luke V. Walch and Janine R. Walch, case number 2023cv30195.

In United States Bankruptcy Court, Denver District, Luke and Janine Walch, 23-bk-11420.

Source: BizWest

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