Byline: Brian Johnson
Hoping to rebound from its financial problems and a legal battle with former lender Sunrise Bank, Minneapolis-based builder and developer Thor Cos. has hired Manchester Cos. as its chief reorganization officer.
Thomas Wallrich, Thor's legal counsel and managing partner of Cozen O'Connor law firm in Minneapolis, confirmed the hiring of Manchester Cos. late Tuesday and said Thor and its legal team hope to "stop the litigation" with Sunrise Bank and "turn the company around."
Contrary to other news reports, a receivership is not in place, Wallrich said. A motion was filed for a receivership, and a hearing is scheduled for Feb. 6, the attorney said.
Manchester, based in Minneapolis, provides "integrated investment banking, corporate renewal, and management advisory services to small and middle-market companies that range from world-class to distressed," according to its website.
In a lawsuit filed earlier this month in Hennepin County District Court, Sunrise Bank said Thor has not made any payments on a loan that was to be paid in full by Dec. 31, 2018. The company owes $3 million plus "unpaid interest, late fees and reimbursable costs and expenses," according to the lawsuit.
The lawsuit states that, "upon information and belief," Thor is "insolvent or in imminent danger of insolvency" and that the "sum of all of the borrower's debts are...