A major creditor of Richard and Audrey Haisfield’s Stonewall Stallions and related entities has filed an emergency motion in federal bankruptcy court seeking to foreclose on the Midway, Ky., farm and stallions.
The creditor, Cincinnati Capital Corp. and its assignee Stonewall Acquisition (SWA), sued the Haisfields and their various operating entities and were issued a judgment for more than $16 million in unpaid loans that had been issued by CCC’s former parent, Harleysville National Bank. That litigation, however, has been stayed and is on hold as a result of bankruptcy filings in Kentucky and Florida by various entities related to the Haisfields, Stonewall Stallions, and NeverTell Farm.
The motion filed with U.S. Bankruptcy Court in Jacksonville, Fla., seeks a lifting of the stay so it can foreclose on the property and stallions Da Stoops and Value Plus.
At the time of the bankruptcy filings, John Hamilton, a Lexington attorney representing the Haisfields and their equine interests, said the Midway farm would be shut down and sold, and the stallions standing there would be relocated to Stonewall Stallions in Ocala, Fla. The Stonewall broodmare division had previously been shut down and placed on the market.
In its emergency filing, SWA contends it should be permitted to take possession of the farm because the Haisfields have dropped their insurance coverage on the property. The creditor also contends the value of the stallions is continuing to decline, and that the horses should be sold at auction to help preserve SWA’s equity.
"In support of such request, SWA states that due to the continuing deterioration of the value of the Stonewall collateral and the inability of the debtors to provide SWA with adequate protection for its interests, it is in the best interests of the debtors, SWA, and the debtors’ estates that relief from the automatic stay be granted immediately to enable SWA to liquidate the Stonewall collateral at the Keeneland November auctions in Lexington," the motion states.
Attached to the motion were two appraisals from Lexington consultant Ric Waldman that showed how the appraised values of Da Stoops and Value Plus had declined over the past six months. According to the appraisals, Waldman appraised Value Plus, a 9-year-old son of Unbridled's Song , at between $600,000 and $750,000 in April of this year, but the appraised value had slipped to $500,000 as of Aug. 12. Da Stoops, a 7-year-old Distorted Humor horse, was valued at $25,000 on July 15, but was downgraded to $15,000 as of Aug. 12, according to Waldman.
A hearing on the emergency motion has been scheduled for Aug. 26, which, if the SWA motion is granted, would be permit the horses to be consigned to the Keeneland November sale prior to the Sept. 1 deadline.