Bankruptcy filing surfaced during town meeting discussion about purchasing Mini Park.
Ivy Ashe

Ben Hall Jr. Files for Bankruptcy, Creating Quiet Ripple Effect

<p>Since Edgartown attorney Benjamin Hall Jr. filed a personal bankruptcy action last month, the move has caused reverberations in some unexpected places. Mr. Hall&rsquo;s family has interests in dozens of real estate holdings on the Island.</p>

Since Edgartown attorney Benjamin Hall Jr. filed a personal bankruptcy action last month, the move has caused reverberations in some unexpected places. Mr. Hall’s family has interests alone and through trusts in dozens of real estate holdings on the Island.

Once a petition is filed in U.S. Bankruptcy Court, the court orders an automatic stay that not only puts a hold on any collection of debt by creditors, but also on any legal proceedings involving the debtor.

The filing added a wrinkle to a proposal this week before Edgartown town meeting to acquire the so-called Mini-Park, which is owned by the Hall family. And a discrimination lawsuit involving the Martha’s Vineyard Airport Commission has also been affected because Mr. Hall, as a former commissioner, was named as an individual defendant.

“I feel badly that these situations come up,” Mr. Hall said in a telephone interview Thursday, comparing bankruptcy to the rising waters of a flood. “The water gets in places you would never, never anticipate, and affects you in ways you can’t anticipate. All of a sudden you’re bailing.”

Mr. Hall filed with the bankruptcy court on March 18, seeking to reorganize his debts under Chapter 11 of the U.S. Bankruptcy Code. Under Chapter 11, a debtor can reorganize debts and arrange repayment, often at a reduced amount. In most cases, creditors must approve the reorganization plan. Also in most cases, the debtor remains in control of the assets, and operates any businesses under the supervision of the court.

According to court documents filed on behalf of Mr. Hall, he has an interest in personal property valued at $26.3 million, including shares in more than a dozen corporations and real estate trusts controlled by him, his brother Brian Hall, his father Benjamin (Buzzy) Hall, and other members of the Hall family.

Mr. Hall said he does not expect the reorganization plan to result in any discharge of debt.

“That’s not what I’m seeking at all,” Mr. Hall said. “Everybody is going to get paid a hundred cents on the dollar. There is certainly enough money on an ongoing basis to pay all the obligations that I have.”

Meanwhile, the bankruptcy filing has stopped all proceedings in a lawsuit filed by former airport employee Beth Tessmer alleging workplace discrimination.

Ms. Tessmer named the airport commission, and individual commissioners including Mr. Hall, among the defendants in the lawsuit. Mr. Hall was a member of the airport commission at the time the discrimination was alleged, but was not reappointed to the commission when his term expired in 2014.

A hearing is scheduled in Dukes County superior court later this month to sort out how the bankruptcy proceedings affect that case. The parties are attempting to reach a mediated settlement to end the lawsuit.

The bankruptcy filing also surfaced on Tuesday in an article asking Edgartown town meeting voters to buy or take by eminent domain the Alfred and Marjorie Hall Park on Main street, more commonly known as the Mini-Park. The article was amended on the floor of town meeting by the selectmen, making it dependent on resolution of the bankruptcy case.

The immediate issue became moot when voters overwhelmingly rejected the warrant article. It is unclear, however, how the bankruptcy might affect negotiations on a new lease. The town has leased the park from the Hall family since 1979, and the latest five year lease expires this year.

Mr. Hall said he submitted a new lease proposal to the town in December, and is awaiting a response from the conservation commission. He said there will be no interruption of the use of the park, and is confident that lease terms will eventually be worked out.

Mr. Hall and his family also are in the process of signing agreements to lease two of their movie theatres to an Edgartown hotelier for the next 20 years. Mark Snider plans to refurbish and reopen the theatres this summer. The bankrupcty filing is not expected to affect the theatre project.

In the bankruptcy filing, Mr. Hall reported monthly income of $33,156, most of which comes from real estate interests. He lists monthly expenses of $21,387.

According to the documents, Mr. Hall owes a total of $2.3 million to 36 creditors. The largest portion, $1.1 million, is debt owed to the Martha’s Vineyard Savings Bank, secured by several properties, including his West Tisbury home. The bank has begun foreclosure proceedings on the home and other properties controlled by Mr. Hall.

The next largest debt is $994,000 in unsecured debt owed to family trusts and corporations. Records show Mr. Hall borrowed a total of $994,000 against his family’s business and real estate holdings dating back to 1991.

Also listed is personal credit card debt of $138,772, and $11,081 owed in federal, state, and local taxes.

Under court procedures, Mr. Hall has 120 days from the original filing to present a debt reorganization plan.

Comments

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 07:22

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concerned tisbury

Ok doesn't it seem like he should sell some assets, it's obvious he has them. He can't live on a net income of over 11 grand a month? BEN SELL SOMETHING!

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 08:45

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Hallelujah

Thank GOD! Hallelujah, Hallelujah! Maybe this will finally get his attention! As a infamous Reverend for our anointed one once said "The Chickens are Coming Home to Roost"! Hallelujah, Hallelujah!

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 10:12

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a self made business owner and regular summer visitor North Carolina

Sadly, it sounds like another in a long list of second or third generation family business owners/managers who didn't earn it for themselves and who are therefore not equipped to protect and nurture what they didn't personally build.

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 10:47

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J.P. Bretl Edgartown

I see that Mr. Hall said. “Everybody is going to get paid a hundred cents on the dollar. There is certainly enough money on an ongoing basis to pay all the obligations that I have.” If this is the case, then how is it that a) the court approved the bankruptcy filing, and b) "The bank has begun foreclosure proceedings on the home and other properties controlled by Mr. Hall?" The very definition of solvency is the ability to pay your debts as and when they come due. It seems unclear, at least to this reader, exactly what Mr. Hall's financial status is and what his motivations are.

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 10:57

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Very Annoyed Tisbury

Ben Hall Bankrupt, I do not think so because it sounds like a cash flow and spending problem. You can sell the mini park for 2.1M I'm sure that will help the problem. Ben Hall is as bankrupt as Hillary and Bill "were"!

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 12:18

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American Vineyard Haven

If you owe taxes, it is un-American to avoid paying them. Massive credit card debt is the sign of an extraordinarily irresponsible individual. In the past there was debtor's prison and the stocks. What can the town do today? Assets must be seized at minimum.

Mr. B Chilmark

We are a country of laws and it seems as if a legal path is being followed. And the stocks and debtors prisons never got any money back for anyone.

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 13:00

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ellen west tisbury

This development is somewhat appalling, though not unexpected. As an attorney, Mr. Hall is most likely very versed in personal liability, so its clear that he thinks despite a monthly income that is equal to what many islanders make in a year, he should receive some type of debt relief. Seriously?

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 13:55

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jasmvy West Tisbury

Poor Brother Grimm! One can hardly imagine the pain and hardship of trying to make ends meet with a paltry $33,000.00 a month.

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 14:11

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Astonished Chappaquiddick

Is this a late April Fool's prank or a prank in April by a fool? And we appoint and elect him to leadership positions? We are the fools. Never again. This is unconscionable.

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 14:19

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deshandra brown mv

When you get something given to you instead of working for it, you do not recognize the value. If in fact there are 'cash flow' problems, he needs to look no further than the mirror. Allowing your assets to deteriorate is a fools game. I'd guess the yellow house that has been sitting vacant for years would have brought well north of a 100k per season in rent. Letting movie theaters fall apart in OB instead of getting a triple net lease tenant is foolish. Lets not forget about the years of fighting over the 'hallsgate' development of land off the Edg VH road that just sits there. (where the junk carsgate thing played out years ago) Many lawyers and business people use the filing of a bankruptcy petition as a tool for negotiation in order to not pay creditors what they owe. It's just a business tool unless someone owes more than their assets/liabilities, which from reading the above, does not appear to be the case.

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 15:18

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Charlene Maciel

Why is this news? So many jealous people like to tear people down just because they have more than they do. This isn't news it should be personal and its sad!

Farmer5 chilmark

I guess I'm jealous. I wish I had $135,000 in credit card debt!
Maybe if they hadn't let so many of their properties deteriorate so badly they could actually have rent paying tenants. A little civic pride and responsibility would have put money in their pockets. I might be more sympathetic. Now, not so much.

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 16:18

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gina nyc/Menemsha

Supposedly , assets held in a trust are protected to a degree from the other assets owned by the debtor trust. I think Mr. Hall has another strategy/end game in mind.. b/c as previously mentioned filing for a Chap. 11 & already claiming to be able to pay all creditors 100% is an odd approach.. He should have just requested more time to pay.. & MV Saving to assign his mortgages to their "workout" desk.. & simply avoid getting mixed up in the court system..

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 22:18

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Bob Edgartown

They live off rents and if they sell something the money goes to trusts and is split up. Which is one reason why they only want to rent.

Submitted by Anonymous (not verified) on Fri, 04/17/2015 - 23:51

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jim kelly Denver, CO

Chalene, very well said. I agree 100%. There have been many other well to do folks around town/Island that have had to go down the same road as Ben. This is personal and should be left out of the news. Ben, will figure it out he always has.

Submitted by Anonymous (not verified) on Sat, 04/18/2015 - 09:05

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Kaysea Hart Hingham, Aquinnah

I am disapointed the Gazette printed this article. It doesn't seem like news. This feels like gossip.

Submitted by Anonymous (not verified) on Sat, 04/18/2015 - 12:13

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jlb edgartown

I think what makes this newsworthy is that they allow their property to deteriorate instead of selling it so it is nice to look at. I can't think of any other land owners that do that. Aren't the Halls lucky that they can lease two theaters that someone else is willing to fix up.

Submitted by Anonymous (not verified) on Sat, 04/18/2015 - 13:20

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Jean Edgartown

This IS News Kaysea Hart!!
This family has had a effect on this entire island for decades and nothing in my memory which goes back six of them has ever been positive!
Maybe those of you from Hingham, Aquinnah (Gay Head still to some of us) have not felt the effects as much as those of us from down island especially Edgartown "Year-round"!

Submitted by Anonymous (not verified) on Sun, 04/19/2015 - 10:17

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Just Opinion Tisbury

This is newsworthy because of the scale and history Hall family properties, drama, and oddity. They buy properties and watch them deteriorate. The Hall family has a tradition of abject neglect of property - each down island Main Street has an example. There is something newsworthy in a LAWYER saying he can pay all his debtors but has to use bankruptcy protection from his debtors. There is something going on under the surface. Delay tactic?

Submitted by Anonymous (not verified) on Tue, 04/21/2015 - 17:38

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BF

To all who think this article is simply gossip and not newsworthy, I would surmise, that you have either not been paying attention over the many years, or , you have not been here long enough to understand.
Therefore , it perhaps would be prudent for you to consider refraining from further comment.

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