International Institute of Culinary Arts founder and president George Karousos will see a portion of his Abbey Grill on bank foreclosure list and his liquor license auction off on July 9 in Massachusetts.
Karousos filed a Chapter 7 bankruptcy protection last March. According to records, he owed back taxes amounting to $425,000 and about 60 creditors are seeking $743,000 from Karousos for unpaid services and breaches of contract. According to U.S. Bankruptcy Court Attorney Warren Agin, bidders will be allowed to enter early the auction venue, which is the former Congregational Church.
The auction of the property on bank foreclosure list excludes the Abbey Grill real property. The $1.6 million mortgage loan on the property is owned by Millenium BCPbank.
Karousos’ bankruptcy filing listed $2.2 million in total assets and debts of $2.89 million. Agin pointed out that the assets could be lower and the debts higher.
Karousos placed the value of Abbey Grill and Great Hall to be around $1.7 million, with personal property assets lower than $500,000.
Millenium has reportedly hired a construction firm based in Medford to assess the repair cost for the Abbey Grill. The structure is said to be in dire need of exterior repair where loose bricks fell early last year.
The bank foreclosure list auction includes a kitchen, 6-foot water fountain, bar fixtures, bakery and bar equipment, such as ranges and grills, granite-top tables, appliances, ovens and a music system.
Among the personal property of Karousos not included on the auction are a Hook and Hastings circa-1897 pipe organ valued at $150,000 and the 2006 Subaru Forester with a listed value of $11,065.
Meanwhile, the breaches of contract claims were made by people who are planning to hold events at the property of master chef Karousos. Agin said that many have filed claims against Karousos’ company for refund of deposits and lost money.
The U.S. bankruptcy code stipulated that consumers’ claims should be paid before tax claims. Some creditors who filed breaches of contract claims against Karousos include husband and wife Derek Bandarra and Jill Dagwan for $8,736 and $11,655 for Kelly Bairos of Rhode Island’s East Providence.
The July 9 auction is the second involving Karousos’ property. Last month, a Karousos building on bank foreclosure list was purchased for $145,000.
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