Bankruptcy Auction for the Versace Mansion in Miami

12/18/2013

Bankruptcy Auction for the Versace Mansion in MiamiThe fabled Versace mansion in Miami, Florida, was sold on September 17 for $41.5 million in a bankruptcy auction that attracted bidders including Donald Trump and the Florida developer who owns the Palm Beach Polo Club.

Bidders had to sign a confidentiality agreement, including agreeing to a $3 million deposit and providing proof of funds in the amount of $40 million. The winning bidder was VM South Beach, the current mortgage holder on the property.

Gianni Versace bought the house, known as Casa Casuarina, in 1992 for $2.9 million. The 23,000 square-foot mansion is filled with hand-painted frescoes, a gold and marble toilet, and a pool inlaid with 24-karat gold, among other luxuries. The home was sold to telecom magnate Peter Loftin in 2000.

Earlier this year, Loftin faced allegations that he had let the property go uninsured for an unspecified period, and that it was underinsured and had little on-site security. VM South Beach purchased the note on Loftin’s loan, and in July 2013 filed emergency motions for a court-appointed trustee due to the “fraud, dishonesty, incompetence or gross mismanagement” of Loftin’s conduct regarding the property.

Loftin founded a Raleigh, North Carolina, based telecommunications company in 1983, which he sold in 2003 for $138 million. He bought 71 acres in Raleigh, which he planned to turn into a housing development, and then later built a 17,000 square-foot mansion. In 2007, he listed the property for $32 million, but the housing market was beginning to soften and it never sold. He reduced the price to $20 million in 2009, and then in 2010, the property went to foreclosure and sold for $5.6 million at auction.

Loftin filed for Chapter 11 bankruptcy earlier this year. Chapter 11 bankruptcy helps businesses reorganize to deal with debt while continuing to operate. A Chapter 11 plan helps a business balance debt with a payment plan or downsizing assets to help pay down claims that it owes. To qualify for Chapter 11, you must be a small business owner with debts less than $2.4 million.

Please keep in mind that every case is different, so if you are thinking of filing bankruptcy, and would like to schedule a no-cost consultation, please contact our office by completing the form on this website, calling us at 954-920-5355, or emailing us at info@lslawfirm.net.

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Attorney Advertising. © Copyright 2017 Leiderman Shelomith. All rights reserved. Please keep in mind that every case is different, so if you are thinking of filing bankruptcy,
and would like to schedule a no-cost consultation, please contact our office by completing the form on this website,
calling us at 954-920-5355, or e-mailing us at info@lslawfirm.net.