Le Centre on Fourth co-owner eyes reopening of dismissal motion record

By Caroline Salls

Pittsburgh, Feb. 13 – Le Centre on Fourth LLC hotel co-owner Al J. Schneider Co. asked the U.S. Bankruptcy Court for the Southern District of Florida to reopen evidence on its November motion to dismiss the company’s bankruptcy case or transfer it to the U.S. Bankruptcy Court for the Western District of Kentucky, according to a motion filed Monday.

In the original case dismissal motion, Al J. Schneider said “the debtor filed the case without corporate authority.”

Al J. Schneider said in Monday’s motion that the bankruptcy filing was not authorized by both of Le Centre’s managers and was initiated in bad faith and in the wrong venue.

According to Monday’s motion, Le Centre on Fourth “contradicted its own objection to the motion to dismiss” at the Dec. 18 and Dec. 19 hearing “when it argued, for the first time, that the first amendment to the debtor’s operating agreement is invalid, and therefore that [co-manager and co-owner Eric Bachelor and his company Bachelor Land Holdings, LLC]’s consent was the only authority needed to file the bankruptcy petition.”

As a result, Al J. Schneider said it is looking to reopen the evidence on the dismissal motion to introduce a manager’s certificate and related testimony to refute the company’s argument that the operating agreement amendment is invalid.

According to Monday’s motion, this “evidence may be material to the issue of corporate authority,” and Le Centre on Fourth will have the opportunity to challenge the evidence if the record is reopened.

“AJS will be prejudiced if the record is not reopened as it had no reason to believe that the debtor would contradict its own arguments in the debtor’s objection, filed the Friday night before the Monday morning hearing,” Al J. Schneider said.

Plantation, Fla.-based Le Centre on Fourth is the holding company for the Embassy Suites hotel in Louisville, Ky. The company filed bankruptcy on Nov. 10 under Chapter 11 case number 17-23632.

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