Maui loan firm files for bankruptcy
A Wailuku industrial loan company that was ordered to stop taking deposits and investment money from customers has filed for bankruptcy.
Maui Industrial Loan & Finance Co. Inc. is seeking to liquidate its business after filing a Chapter 7 bankruptcy on Thursday. The company said its liabilities totaled $16.2 million, the bulk of which was owed to more than 60 individuals and others who had unsecured claims.
The filing came about two and a half months after Hawai'i Commissioner of Financial Institutions Nick Griffin issued a cease and desist action against the Wailuku firm, saying Maui Industrial was licensed to make loans and not take or solicit funds, deposits, investments or other instruments of borrowing.
The Maui News also reported this week the firm's president, certified public accountant Lloyd Kimura, was facing lawsuits for unpaid loans, foreclosures and other claims for a commercial condominium he developed on Maui. The newspaper reported the firm also operated under the Maui Finance Co. name.
The filing made by Honolulu attorney James Wagner for the firm lists Maui Industrial Loan's assets as totaling $7 million. This includes $4 million in estimated accounts receivable and an estimated $3 million from potential counterclaims.
Only one secured creditor was listed for the bankruptcy — American Savings Bank is owed $723,480.
The remainder of the money, some $15.5 million, is owed to individuals, companies and trusts who don't have secured claims. Most of the unsecured creditors are tied to individuals and businesses on Maui.
These claims range from a $1,364 promissory note to an individual trust in Kula, to $2.04 million owed under a promissory note to a trust that is managed from Honolulu.
Kimura could not be reached for comment yesterday. Calls to Maui Industrial's office were unsuccessful because the telephone number was no longer in service.
A creditors meeting and appointment of a trustee has been scheduled for March 9 at the J. Walter Cameron Center in Wailuku.