The largest unsecured creditor in the bankruptcy case of a Tinley Park, Ill., firm is asking a judge to appoint a receiver to oversee the operations of the business, the Chicago Tribune reported yesterday. The motion filed by American Residential Leasing alleges that Mack Industries hasn't lived up to the terms of an agreement the two companies reached over the leasing and subleasing of properties owned by American Residential, and that Mack has been opaque about its finances prior to and since its March 24 chapter 11 filing. Mack Industries essentially grew out of the recession and the waves of foreclosures that resulted by buying those properties and renting them out. The company, which has properties throughout the south and southwest suburbs, also expanded into other areas of real estate, including commercial development. In its filing, American Residential said it will ask the judge overseeing the bankruptcy case during a hearing today to appoint a trustee who would investigate Mack Industries' financial affairs and assess the company's prospects for reorganization. In its bankruptcy filing, Mack Industries lists American Residential as its largest unsecured creditor, with a claim of $4 million. American Residential has a lawsuit pending in Cook County Circuit Court against the company.
