Local auction 

Another Spicer Mansion auction scheduled for Saturday

Mystic ― Another Spicer Mansion public auction will take place on Saturday barring unforeseen last-minute maneuvers that may postpone the event.

The foreclosure sale is scheduled for noon at the eight-bedroom boutique hotel, located at 15 Elm St. on the Groton side of Mystic.

The property was valued at $3.67 million before an initial foreclosure sale last March. Ross Weingarten, who submitted a winning bid of $3.52 million at the time, later failed to complete the deal. He was one of four bidders, including Chelsea Groton Bank, that filed the foreclosure suit against the hotel’s owner, Gates Realty Holdings.

Chelsea Groton had filed a lawsuit in New London Superior Court, alleging Gates Realty owed approximately $1.8 million on a mortgage.

Aimee Siefert, the court-appointed attorney to conduct both foreclosure sales, said Thursday she didn’t know what to expect at Saturday’s auction.

“Haven’t had many calls to date,” she wrote in an email.

Again, potential bidders will need to register with Siefert prior to the auction and present for their review a certified bank check made payable to the bidder in the amount of $367,000.

Since the first foreclosure sale, Brian Gates, a director of Gates Realty, has sued for bankruptcy under Chapter 11, Subchapter V, which allows businesses to reorganize their debt while continuing to operate. The process did not go smoothly, according to the case file in the United States. Hartford Bankruptcy Court shows.

In late September, a court-appointed trustee filed a motion to convert the case to Chapter 7 or, failing that, to dismiss the case. Generally, in Chapter 7 bankruptcy, a debtor’s assets are liquidated.

Subchapter V administrator Timothy Miltenberger wrote in a filing that information provided by Gates shows he has no income with which to reorganize.

During a September 29 hearing, Steven Mackey, the US administrator handling the case, strongly criticized Gates and his attorney, George Tzepos. Mackey, heard on a recording of the hearing, faults Gates for filing two monthly operating reports that “contain no information” and for failing to file others.

“The US trustee is not in love with how the debtor and the debtor’s attorney conducted this Chapter 11 bankruptcy,” Mackey said.

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