A Cincinnati bank that holds $16 million in bad loans to Stonewall Farm wants to seize a Woodford County farm and two stallions so the horses can be placed in Keeneland's November sale.
Cincinnati Capital Corp. on Sunday filed emergency motions in U.S. Bankruptcy Court in Jacksonville, Fla., to lift an automatic stay and allow the bank to seize Stonewall's Nevertell Farm in Midway and the stallions Value Plus and Da Stoops.
In July, Cincinnati Capital's former parent, Harleysville National Bank, won a $16 million judgment against Stonewall owners Audrey and Richard Haisfield in a Pennsylvania court for bad loans. The collateral for the loans included the farm and the stallions. According to the latest filing, the farm was appraised at $11.25 million in 2009.
The Haisfields and related Stonewall entities sought bankruptcy protection in Florida last month as the bank was moving to seize Value Plus and Da Stoops.
Now, the bank's successor alleges the insurance on the farm has been dropped and the value of the horses is declining, necessitating immediate seizure.
According to the filing, appraisals by bloodstock consultant Ric Waldman show the value of the stallions "deteriorating." Waldman recommended selling them in the Keeneland November sale.
In April, Waldman estimated Value Plus' worth at $600,000 to $750,000; now, Waldman appraised the stallion "guardedly" at $500,000. The appraisal said Da Stoops' value has slipped from $25,000 in July 2009 to $15,000.
A hearing on the emergency motion is scheduled for Aug. 26.
The bank also wants to move the cases to Kentucky, where five Stonewall entities filed for bankruptcy protection in July.
Attorneys for the bank and Stonewall could not be reached for comment.