Since 1994
Phoenix Investors has been offering professional
management and advisory solutions to public and
private companies, trusts, and individual
investors. Our management endeavors to
understand our clients' individual needs, work
with our client to assess specific goals, and
structure investments according to our clients'
specific risk/reward profile to meet both the
clients' short term and long term needs. Our
real estate management team professionally
manages our portfolio properties through a
combination of local and national representation
in order to effectively create a
"working-bridge" between owner and
tenant, building a cooperative mutually
beneficial working relationship. Our experts
assess and refine our client's portfolio's to
maximize our clients cash flow, equity
accumulation, and internal rate of return based
upon our clients' specific dynamic goals.
About Centro Plaza:
During the late 1980's,
Frank Crivello and Joseph Crivello built and
acquired a large portfolio of shopping centers,
including many anchored by Kmart’s, across the
country that totaled millions of square feet.
Most were anchored by Kmart or other discounters
along with chain grocery or drug stores. In
addition, Frank Crivello built or acquired
operating businesses including a restaurant
chain and six big box grocery stores. Joseph
Crivello and Frank Crivello, cousins, were
partners in the shopping center development
enterprise. Additionally, Frank Crivello served
as an Executive Vice President of National
Management, Inc. Joseph Crivello is the sole
shareholder of National Management, Fifth
Corporation, Berkshire Factoring, Inc., Sierra
Finance Corporation, and Sierra Holding
Corporation. Frank Crivello owned in whole or in
part 122 companies and employed over 1,000
individuals.
During the late 1980's
Metro North State Bank was Frank Crivello and
Joseph Crivello’s primary bridge and
construction lender. In 1989, Plaza Sixty, Inc.,
Frank Crivello’s corporation, purchased Centro
Plaza from Metro North State Bank. Metro North
State Bank was part of a multi-billion dollar
bank group in Kansas City, Missouri. Under the
weight of the nation’s recession, Metro North
State Bank failed in 1992. The Federal Deposit
Insurance Corporation, ("FDIC"), become the
Receiver for Metro North State Bank. The FDIC
placed Frank Crivello’s loans in liquidation.
Thereafter, litigation commenced between the
FDIC and Frank Crivello. Joseph Crivello was not
a defendant in the FDIC litigation. The
litigation related to shopping center loans, not
including Centro Plaza, made in the late 1980's
by Metro North State Bank to Frank Crivello.
Frank Crivello was represented in the FDIC
litigation by Leonard G. Leverson, of the law
firm of Kravit, Gass & Weber, S.C. ("KGW"),
www.kravitlaw.com. KGW generally represented
Frank Crivello, Joseph Crivello, and their
companies.
After efforts aimed at
out-of-court settlements with creditors and the
FDIC failed, Frank Crivello filed a voluntary
chapter 11 petition on November 20, 1992. KGW
acted as bankruptcy counsel for Frank Crivello,
as a debtor-in-possession. Frank Crivello, as a
chapter 11 debtor-in-possession stood in the
shoes of a trustee and acquires the same rights,
duties, and responsibilities as a trustee.
Between November 20, 1992 and August, 1994, KGW
and Frank Crivello, as a debtor-in-possession,
worked to confirm a Chapter 11 Plan of
Reorganization (“Plan”). The Plan had broad
creditor support and was supported by the
unsecured creditors committee. The FDIC was
Frank Crivello’s largest creditor given the
concentration of the FDIC’s loans giving the
FDIC an effective veto over Frank Crivello’s
Plan. Indeed, without the consent of the FDIC
Frank Crivello’s Plan couldn’t be confirmed.
Unfortunately, the FDIC voted against Frank
Crivello’s Plan. In September, 1994, Frank
Crivello’s bankruptcy case was converted to
Chapter 7. Between September, 1994 and November,
1994, KGW and Frank Crivello negotiated with the
Chapter 7 Trustee, his counsel, and the US
Trustee’s office to settle all claims between
Frank Crivello, including his related parties,
and the bankruptcy estate. Among other assets,
Frank Crivello and his related parties purchased
the trustee’s interest in Plaza Sixty inc. and
Centro Plaza.
In November, 1994, KGW and
Frank Crivello and his related parties settled
all matters with the bankruptcy estate subject
to payment of $2,250,000 and a closing in March,
1995. On March 31, 1995, Frank Crivello closed
the underlying transaction and paid the
bankruptcy estate the required settlement. In
April, 1995, Frank Crivello was granted his
discharge in bankruptcy. However, Frank
Crivello’s bankruptcy settlement didn’t include
the FDIC’s direct claims including its loan on
Centro Plaza. The FDIC and Frank Crivello
settled the matters related to Centro Plaza in
1995. In 2003 Frank Crivello settled his
remaining litigation with the FDIC related to
Metro North State Bank.
The Crivello family
continues to own Centro Plaza. Centro Plaza has
flourished since its opening. Best Buy and
Centro Plaza's other tenants enjoy strong
commercial activity.
Safe Harbor Statement
Under the Private Securities Litigation Act of
1995 - With the exception of historical
information, the matters discussed in this press
release are forward-looking statements that
involve a number of risks and uncertainties. The
actual future results of the Phoenix Investors
could differ significantly from those
statements. Factors that could cause or
contribute to such differences include, but are
not limited to assumptions relating to the
marine market and that there will be no
unanticipated material adverse change in Phoenix
Investors's operations or business.
©
2004 Phoenix Investors, LLC