Siena Update

Thanks again to the inscrutable blogging superstar behind REReno for the attached document and the willingness to provide their thoughts:

4 objections have been filed to this.  Rough look is that RER would get about $2.5M from the sale and Barney gets $250,000.

So if RE Reno gets $2.5M and Barney gets $250k, does that mean that barney gets $2.75M?  How much is left for the people who actually financed the deal?  How does this connect to Walter’s BK filing, considering he personally guaranteed RER investors’ cash?  Who is bad here?  Barney?  Walter?  Kelly?  Bruce?  All of them?

What’s your analysis?  Please share your insights after reading this document (Click here –>Settlement DOC 271).

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8 thoughts on “Siena Update

    • I spoke with Walter today. He told me the BK was because he made the guarantee on the Siena. My guess is he will “claim” very little in assets in order to show he can’t pay the guarantee in full.

  1. How is Walter going to treat the MF-08 & REL legal liability obligations to noteholders for breach of finduary duty and fraud.

    Why isn’t BAR-K in Walter’s Bankruptcy with his other LLC’s?

    • I believe only Barney and Kelly make up Bar K. Walter gave his share to the boys quite a few years ago (as I understand it).

  2. The letters posted by equitatus reveal that Walter Ng
    may have run R.E. Reno like a shell game or a Ponzi
    scheme.

    Any investor could withdraw money at any time but
    the Siena was only paying interest to R.E. Reno. As
    a result, as money went out to pay off an investor’s
    principal account, Walter Ng had to raise “new” money
    to make the payment.

    Some of that “new” money may have come from the
    money going out because at least one investor reports
    that the money they withdrew from R.E. Reno, they
    reinvested in R.E. Loans, for a net zero. Other money
    may have come from the out-of-state slush fund, the
    Walter Ng Investors bank account at Mechanics Bank.
    Finally, there may have been “new” investor money
    solicited to replace the payoffs.

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