Stonewall Farm ownership relinquished, put up for sale
Thoroughbred owners and breeders Richard and Audrey Haisfield have relinquished Stonewall Farm in Midway to a lender, who is putting it up for sale for $10.75 million.
Cincinnati Capital Corp., which bought the debt on the farm from a Pennsylvania bank, announced Tuesday it has seized control of the 260-acre property.
Under the name Nevertell Farm, the property has been in bankruptcy in Florida; in September, Richard Haisfield asked the court to let him list it for $8.4 million.
Before a hearing last month on that motion, the Haisfields and the bank reached an agreement instead to turn over the farm, which does not have any horses on it at the moment.
A joint motion for approval of the deal was filed in U.S. Bankruptcy Court in Jacksonville, Fla., on Monday.
Eric Golden, attorney for the Haisfields, was traveling in Florida and could not be reached for comment.
By signing over the deed, the Hais fields avoid a formal foreclosure action, said Joseph M. Engelhart, CEO of Cincinnati Capital, which is acting under the name Stonewall Acquisitions.
"Stonewall Farm is a prized asset and one that we expect will gain considerable interest from buyers around the world," Engelhart said in a statement. "This farm is a showstopper. ... The 5,600-square-foot main residence is completely updated and elegant in all respects. The horse facilities are some of the most unique and discriminating in the world. ...In the coming weeks (we) will begin to entertain offers from prospective buyers."
According to court documents, in exchange for the deed to the farm, Cincinnati Capital agreed to credit the Haisfields with $8 million, about half of the $16 million they owe after a Pennsylvania court judgment.
The bank also released a lien on a house in Palm Beach, Fla. That six-bedroom house sold last week for $5.05 million to Connecticut financier Howard Sosin, co-founder of AIG Financial Products, reported the Palm Beach Daily News. The Palm Beach property was a "short sale," meaning it sold for less than the mortgage value; the Haisfields bought the property in 2005 for $8.6 million and had listed it two years ago for $14 million, the newspaper reported.
In a separate joint motion filed this week, the Haisfields also agreed to relinquish the deed to about 113 acres on Aiken Road in Versailles to Farmers National Bank in Danville. Farmers National Bank held a $3.2 million mortgage on the farm, and this will forestall foreclosure on that property as well.
Several Haisfield-related entities have filed for bankruptcy protection in Florida and in Kentucky. In August, Fifth Third Bank won a $15.5 million judgment in Fayette Circuit Court against Stonewall Farm; JPMorgan Chase Bank also has sued in Lexington, alleging Stonewall owes $7 million.
This story was originally published October 20, 2010 at 12:00 AM.