01/04/2011 4:56PM

Stonewall Farm seeks bankruptcy court approval for sales

Email

LEXINGTON, Ky. – Audrey Haisfield’s bankrupt Stonewall Farm entities have filed a motion to sell A. P. Warrior, its remaining interests in income from Leroidesanimaux, and its interest in stud-fee income from deceased champion Lawyer Ron. The proposed buyer is Family Broodmares, a Florida-based company whose managing partner is Haisfield’s son, Marc.

In a motion filed Dec. 28 in a Kentucky bankruptcy court, five Stonewall entities sought the court’s approval for the sale and also for Stonewall’s plan to transfer interests in 12 stallion shares to major creditor Chase Bank. Those stallion interests are in A.P. Indy, Indian Charlie, El Corredor, Mutakddim, Syncline, Wiseman’s Ferry, You and I, Seeking the Gold, Out of Place, Red Ransom, Zavata, and Theatrical.

In November, Stonewall sold its 92 percent interest in Leroidesanimaux, not including receivables such as breeders’ awards and 2010 stud-fee payments, to another Marc Haisfield-managed entity, Palm Beach Stallions I, for $715,000. According to this latest purchase agreement, Family Broodmares has offered $510,000 for a package including Stonewall’s interests in accounts receivable for Leroidesanimaux; the stallion A. P. Warrior (including receivables); a 35 percent interest currently held by Chase in stud-fee receivables for Lawyer Ron; and other interests in Lawyer Ron income that currently are the subject of a pending lawsuit involving Stonewall and Chase and Fifth Third banks, two of Stonewall’s largest creditors. Chase will release its liens on the stallion assets.

According to the purchase agreement, A. P Warrior will continue to stand at Stonewall Farm Ocala, where he’s advertised with a $6,000 fee. Leroidesanimaux also stands there for $7,500.

“At the conclusion of the sale, the debtors will still have pending litigation to conclude with Fifth Third Bank relating to A. P. Warrior, Leroidesanimaux, and Lawyer Ron stud-fee receivables, which are the subject of a pending adversary proceeding between the debtor, Fifth Third bank, and Chase Bank,” the court documents noted.

Under the proposed agreement between the Stonewall entities, Family Broodmares, and Chase, Stonewall will turn over most of the $510,000 from the sale to Chase. Chase will allow Stonewall to retain $30,000 for its continued operations. Stonewall also will receive $5,000 from the purchase price to transfer its claim on 19.2 percent of stud-fee receivables for Lawyer Ron, subject to the outcome of the lawsuit; Fifth Third Bank has contested Stonewall’s claim to Lawyer Ron income. Family Broodmares will pay Stonewall’s costs in that lawsuit.

Chase has agreed to the proposed sale, which must be approved by the court. A hearing is set for Jan. 26 in Lexington.

Stonewall shuttered its Kentucky operation last year in the wake of three major bank lawsuits over alleged unpaid loans. In addition to Chase’s $7 million suit against the operation, Harleysville National Bank, now Stone Wall Acquisition, won a $16 million judgment and Fifth Third won a $14.7 million judgment against Stonewall. A number of Stonewall-related entities have filed for bankruptcy, including three in Florida and five in Kentucky.