Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, July 26, 1995 TAG: 9507260024
SECTION: BUSINESS PAGE: B6 EDITION: METRO
SOURCE: By JEFF STURGEON STAFF WRITER
DATELINE: LENGTH: Medium
Haley filed a Chapter 11 bankruptcy case last week to protect his company, Property Maintenance Corp. of Roanoke, from its creditors.
The company was awarded $3 million of construction work in the $42 million project to refurbish the hotel and build an adjoining conference center. His role was controversial, because he did not bid for the work as contractors typically do on government and some private construction jobs. Rather, he was chosen in January 1994 to help fulfill a pledge to the Gainsboro community about minority participation in the hotel project.
At the time, Haley, who has run a janitorial and security business since 1975, had just become a licensed contractor. His employees did about 15 percent of the work called for under the contract. The rest was done by contractors preselected to help him complete the job.
Those involved in Haley's selection said they hoped the experience would strengthen his management ability and make his company more successful. But the company owes $515,000 and has assets of $160,000, according to court papers filed with the petition to the U.S. Bankruptcy Court for Western Virginia. Haley owes money to janitorial supply companies, a uniform service and Roanoke Gas, according to a list of debts not backed by particular assets. Lists of secured debts and assets have not been filed yet.
Haley's debts are unrelated to the hotel project, said his attorney, William Lindsey. Haley has been paid for the work he did, and his subcontractors have been paid, said Brian Wishneff, acting director of the Hotel Roanoke Conference Center Commission.
Haley referred questions about the bankruptcy case to Lindsey, who said he hoped to resolve the matter quickly and without difficulty. Lindsey said he did not know when Haley would file a reorganization plan.
by CNB