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EmailSanta Barbara-based Melchiori Construction Co. has filed for Chapter 7 bankruptcy protection amid a flurry of creditor lawsuits.
The general contractor filed bankruptcy documents at 9:02 a.m. on Tuesday and listed assets of $50,000 or less and debts between $1 million and $10 million. In a Chapter 7 bankruptcy, a debtor seeks to liquidate its assets to repay creditors.
The filing came only minutes before a Santa Barbara County Superior Court hearing in which Santa Barbara Bank & Trust, which alleges it is owed $9 million by Melchiori, was set to ask a judge to appoint a receiver to take control of the general contractor. The bankruptcy filing puts those proceedings on hold, according to a ruling issued from the court and obtained by the Business Times.
A call to Melchiori’s headquarters was not immediately returned. Melchiori’s attorney declined to comment.
Melchiori has faced dozens of lawsuits in recent years alleging that it did not pay its subcontractors and creditors on time. The pace of those lawsuits accelerated in recent months after Melchiori was terminated as the general contractor on a prominent multi-million-dollar project on the UC Santa Barbara campus.
Mark Melchiori also faces a lawsuit in which his stepmother, Linda Melchiori, alleges that Mark Melchiori’s divorce from his wife was an effort to hide assets from creditors.
WHY MARK MELCHIORI HAS FAILED TO PAY HIS STEP MOTHER IS MORE THAN A ” MISUNDERSTANDING’ , THE FACTS DETAIL THAT HE ALSO HAS NOT COMPLETELY PAID AN EMPLOYEES WHO LOANED THE COMPANY MONEY FROM THEIR 401K SAVINGS, SCOTT MINERS A SENIOR PROJECT MANAGER HAS HAD TO A LAW SUIT FILED TO RECOVER HIS 38,000 LOAN WHILE SCOTT JACOBS THE PROJECT MANAGER FROM THE CHAPALA ONE PROJECT AS WELL AS PHIL ORR THE SENIOR ESTIMATOR FOR THE COMPANY WERE ALSO TAKEN IN THIS DIASTER, THESE ESTEEMED PROFESSIONALS HAD TO TAKE TIRED ASSETS IN ATTEMPTS TO RECOVER THEIR LOANS. IN ADDITION AGENT CARRIE ROUSE OF THE CALIFORNIA DEPARTMENT OF LABOR IN SANTA BARBARA HAS SEVERAL CLAIMS FOR UNPAID WAGES FOR LABOR BENEFITTING THE MELCHIORI COMPANY. ALTHOUGH MARK MELCHIORI DID WORK HARD AND DOES DESERVE CREDIT FOR HIS EFFORTS TO FEED MANY FAMILIES FOR YEARS THIS DISREGARD FOR THE INTEGRITY OF HIS FATHER NAME MELCHIORI ONCE UNQUESTIONALBY REGARDED IS UNFORGIVEABLE. MAY GOD CONTINUE TO BLESS UGO MELCHIORI AS HE RESTS IN PEACE
Melchiori owes 9 million to SBB & Trust, collected money for 4 construction projects but did not pay the subcontractors and also took money from his stepmother…all in the last 2 years. You have to wonder what happen to all the money.