National Realty creditor committee seeks more info regarding assets

Chicago, Dec. 19 – National Realty Investment Advisors, LLC’s official committee of unsecured creditors is seeking more information regarding the debtor’s assets, according to a brief filed with the U.S. Bankruptcy Court for the District of New Jersey.

The committee has issued subpoenas regarding avoidable transfers and potential civil claims relating to U.S. Construction and its principals John Farina (chief executive officer) and Dustin Salzano (chief financial officer).

The committee has been working throughout December to narrow the subpoenas.

The committee says that the entities should provide financial information given the clear overlap between the operations and financial affairs between them and National Realty.

The committee is specifically looking to find hundreds of millions of dollars that it says are now missing.

Even though U.S. Construction describes itself as a third party, the committee makes a case that they are involved in the operations of National Realty, including processing National Realty’s investor payments and Farina personally guaranteeing investor loans.

Previously, in September, Regions 3 and 9 U.S. trustee Andrew R. Vara called for conversion of the Chapter 11 case when National Realty had failed to file schedules of assets and liabilities, schedules of current income and expenditures, schedules of executory contracts and unexpired leases and statements of financial affairs after two extensions.

The Secaucus, N.J.-based real estate investment, management and development firm filed bankruptcy on June 7 under Chapter 11 case number 22-14539.

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