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Bank seeks $2M from estate of London Witte Group founder

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An Illinois bank seeking to foreclose on property on the southwest side of Indianapolis also is attempting to collect a $2 million debt from the estate of a local business executive who died in 2010.

Herget Bank in Champaign filed suit this month in Marion Superior Court, asking Judge Thomas J. Carroll to appoint a receiver to manage the property during the foreclosure.

The land, at 2301 S. Holt Road between Interstate 70 and Kentucky Avenue, is home to Tyson Corp., a supplier of commercial modular buildings founded by Richard J. Salewicz of Carmel.

Salewicz died in April 2010 at age 61. Besides owning Tyson, he founded London Witte Group LLC, Indianapolis’ 19th-largest accounting firm, according to IBJ statistics. He also was a chief financial officer of information technology firm Lightbound LLC, located near Kentucky Avenue on the southwest side.

The foreclosure suit filed by Herget on Feb. 16 names Salewicz’s estate in addition to Tyson Corp. and Bazyli LLC, an entity established to receive financing for the Holt Road property.

Bazyli and Salewicz originally received a $1.2 million loan from Illinois-based Strategic Capital Bank in November 2003. Strategic failed and was taken over in 2009 by the Federal Deposit Insurance Corp., which appointed Midland States Bank in Champaign as receiver. Herget Bank later acquired Strategic’s assets.

In the meantime, Bazyli and Salewicz received a second loan from Strategic in December 2006, bringing the total amount owed to $2.2 million.

Acting as receiver for Strategic, Midland agreed several times to extend terms of the loan, which ultimately came due last September. Including principal of $1.9 million and interest charges, Herget says it is owed $2 million.

Midland filed a similar claim of $2 million in July 2010, a few months after Salewicz’s death, in Hamilton Superior Court. That claim is pending.


 

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  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

  4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

  5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

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