Originally appeared in Silent News, November 2000.
Wyndholme Village, a residential senior community for deaf and hard of hearing people in Baltimore, Md., has come to an agreement with creditors regarding the construction of the community.
“My attorneys are preparing the necessary documents for the creditor’s signatures and along with a formal commitment for $6,000,000—the requirements set forth at the September hearing, have been met,” stated James M. Lancelotta, managing member and developer of Wyndholme Village.
Wyndholme Village, mainly operated by Lancelotta, was forced to file Chapter 11 bankruptcy in 1999. Scott Macdonald, Senior Vice President of Marketing, said, “Wyndholme Village went into bankruptcy due to a lender who agreed to fund $7,150,000 in October 1998. They did not perform.” Less than two weeks from the scheduled funding, the lender providing the capital admitted to misappropriating millions of company dollars, which subsequently halted all future activity. The lender was Cornerstone Lending Corporation of America. Michael R. Wise, President and Chief Executive Officer of Cornerstone, was charged with “serious financial improprieties,” and Cornerstone was unable to follow through with the promised money. A follow up by Council for the Creditors Committee revealed that Wise is currently incarcerated and Cornerstone Private Capital has been placed in receivership.
“Without these funds it became impossible for Wyndholme Village to carry the debt. Once this occurred—without the funds as promised—our cash flow from other Lancelotta entities were utilized costing over $200,000 a month. By March 1999 we were forced to seek Chapter 11 bankruptcy,” Macdonald said. He added that each day under the status of Chapter 11 bankruptcy has cost Lancelotta and Wyndholme Village in excess of $5,000 daily for protection of assets.
Macdonald added, “Prior to the hearing held on Sept. 17, I negotiated with all the creditors and was able to create a plan that was acceptable to everyone. The court wanted to be informed of the terms and parameters of the agreement. In essence, Wyndholme Village agreed to allow the creditors to have full control of the property in the event that Wyndholme Village is not able to make the payments it has agreed to make by Dec. 29, 2000.”
According to documents summarizing the planned payments, Wyndholme is required to pay as much as $6,245,000 to creditors, along with unsecured creditors being paid in full beginning in Jan. on a quarterly basis. All unpaid real estate property taxes and trustee fees will also be paid, totaling $56,500, along with administrative fees totaling $110,000.
An unidentified investment group is providing Wyndholme Village with the needed six million dollars by Nov. 28, with verification of these funds being provided to a bankruptcy court by Nov. 16. A cash flow analysis is also required to be provided by Nov. 16.
Wyndholme currently has 28 signed contracts of individuals ready to move into their units, although it has not actively tried to sell any units since February 2000. Macdonald said, “Jim Lancelotta decided not to pursue sales until he was completely sure that Wyndholme Village was going to become a reality. Now, he is sure and has already provided staff with their quotas.”
On Wyndholme Village’s website, Lancelotta writes, “My belief in the deaf community; the need of deaf seniors to have the opportunity to reside in a well-deserved quality environment eliminating the fear of isolation and the support of my staff, family, and the deaf population gives me the strength and conviction to prevail and take this ‘so-called risk.'”
Construction will begin in January 2001, although groundbreaking events will take place earlier.
The Wyndholme Village website may be viewed at www.wyndholmevillage.com.
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