Steve Hoyt, CEO of Minneapolis-based developer Hoyt Properties, Inc., has filed for Chapter 11 bankruptcy protection.
According to Hoyt's bankruptcy petition, which was filed on May 31, his assets total $31.5 million, while his liabilities, owed to between 50 and 99 creditors, total about $54 million.
Hoyt's bankruptcy petition indicates that his creditors include several local businesses, including Security Bank in Glencoe, Crown Bank in Edina, North American Banking Company in Roseville, and Boundary Waters Bank in Woodbury.
Hoyt's lawyer, Michael Meyer, told the Star Tribune that Hoyt filed for bankruptcy to protect assets from Geneva-based Commerce Bank and reorganize some of his debt.Commerce Bank reportedly moved to foreclose on stock in Investors Real Estate Trust, which Hoyt used as collateral for a 2008 loan from the bank.
Hoyt used the loan to refinance other loans related to the purchase of 27 buildings in the Twin Cities area, and the loan matured in February and wasn't paid, the Star Tribune reported, citing court documents.
Others sources who are "familiar with Hoyt's situation" told the Minneapolis newspaper that Hoyt's financial problems extend beyond the circumstances with Commerce Bank, pointing to a private equity fund that Hoyt raised in 2005 to buy commercial properties and that didn't fare well.
For an in-depth look at the events leading up to and surrounding Hoyt's bankruptcy filing, read the entire Star Tribune report here.