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When the first hearing in case 88-17840 started in U.S. Bankruptcy Court at 10:00 a.m. on September 23, 1994, Marina City Associates owed $24,466,101.36. That included $16,590,656.55 still owed to Continental Savings. The federal savings and loan association had given E. Trine Starnes, Jr. a mortgage on May 18, 1983, in the amount of $12.5 million. Starnes had been in default on the mortgage as early as June 15, 1987, and interest, attorneys’ fees, and other costs were piling up.

Thirty creditors had filed claims against Marina City Associates initially totaling $29.0 million but after objections from Ilene F. Goldstein, the bankruptcy trustee, the court disallowed some claims. Most notably, the claim by the Cook County tax collector for $7.3 million as a “priority” claim was allowed as a $900,000 claim secured by a lien against the property.

James M. Flanagan, the court-appointed receiver who managed the commercial property from November 23, 1987, until the bankruptcy, at which time Goldstein took over, filed a claim on February 6, 1989, for $327,403. Goldstein filed an objection on October 13, 1995. Flanagan’s claim was disallowed on December 1, 1995, but on May 15, 1996, Goldstein was authorized to pay $69,000 to Flanagan and $60,000 to his attorney, Myron Kantor.

Other creditors included...

• AIC Security Systems Inc. (2 claims) – $110,668
• Abbott Industries Inc. – $3,465
• Air Canada – $4,165
• Anderson Lock Company – $296
• Controlled Systems Inc. – $1,166
• E&W Engineering (2 claims) – $495,740
• Fancy Colours & Co. – $327
• Hayes Boiler & Mechanical Inc. (2 claims) – $94,160
• James A. Regas – $125,823
• Madigan & Getzendanner – $90,000
• Marina City Venture Ltd. – $32,380
• Marina Towers Condominium Association – $397,040
• Marina Towers Garage Corp. – $60,000
• Nabiga Electric Supply Inc. – $1,322
• Premium Financial Services – $3,687
• Richmark Bank – $1,687,920
• Service Glass Company – $3,384
• ThermFlo Inc. – $9,540
• Travelers of Illinois / Sneckenberg & Thompson – $135,316
• W.R. Grace Dearborn Division – $346

Commonwealth Edison was still owed close to $150,000, but in 1995 the claim was assigned to John L. Marks. (Left) A statement from Illinois Bell, dated February 19, 1988, showing a payment of $340.37 has been made by Century Capital Corporation to restore telephone service to the Marina City office building (where Hotel Chicago is located today). Century Capital Corporation was based in Houston and its CEO was E. Trine Starnes, Jr., owner at the time of Marina City’s commercial property.

The wife and sons of Charles Swibel filed a claim on January 12, 1989, on behalf of Charles Swibel Insurance Trust, for $320,833. Later, $13,750 of this was allowed as an administrative expense.

There would be 90 hearings until the last one at 10:30 a.m. on April 10, 2001.

By January 10, 1994, settlement hearings were being scheduled. On November 15, 1994, a motion was filed for “entry of an order enforcing the court’s prior order authorizing sale free and clear...by trustee and Niki Development Corp,” referring to the sale of the property to John L. Marks. The motion was granted the next day, along with an order by the court that the county not sell the property to recover any real estate taxes.

The bankruptcy court decision was upheld on appeal. Filed on December 8, 1994, and assigned to U.S. District Court Judge Wayne R. Anderson, the appeal was dismissed on March 8, 1995. (Left) Wayne R. Anderson served as a U.S. District Judge for the Northern District of Illinois for 19 years and as a state court trial judge for seven years. He is now a mediator for JAMS, a private alternative dispute resolution provider. Photo obtained from JAMS website.

On August 7, 1995, the court started authorizing payments of attorneys’ fees. The first to get paid was Rosenthal & Schanfield, receiving $215,634. They would later be paid another $62,986 for work and expenses in 1995 and 1996. Coffield Ungaretti & Harris received $187,300 plus $13,284 in expenses.

On October 13, 1995, there were several motions to allow claims, either full or partial, or to deny claims – including a motion to allow the court to pay John L. Marks for the Com Ed bill that was transferred to him. On December 15, 1995, the first of these orders were signed.

A motion by Ilene F. Goldstein on March 21, 1996, for approval of a settlement with Marks and Marina Towers Condominium Association, was granted on April 9, 1996.

None of the creditors got more than a modest percentage of their claim. Hayes Boiler & Mechanical Inc., for example, whose emergency work on an air conditioner kept a restaurant open, got 60 percent of its claim.

At least five claims were disallowed because they were filed late. The last to be paid was the court itself, authorizing payment on December 13, 2000, of a $1,041 fee.

Goldstein submitted her final account on March 23, 2001, and on March 26, 2001, the case was closed. The last filing was on June 24, 2001.

(Above) Final entries in a court summary for case 88-17840.

Other attorneys involved in the bankruptcy case, its appeal, and/or related lawsuits included...

• Adelman, Howard L. – Adelman, Gettleman & Merens, Ltd.
• Ahern, John E.
• Alsterda, Richard Scott – Ungaretti & Harris LLP
• Burke, Edward J. – Burke, Burns & Pinelli, Ltd.
• Cagney, Mary Ellen – Assistant State’s Attorney’s Office
• Esrig, Jerry A. – Zaideman & Esrig, P.C.
• Fahner, Tyrone C. – Mayer Brown LLP
• Fenton, Marc Ira – Neal, Gerber & Eisenberg LLP
• Fox, Paul Thaddeus
• Geller, Jay Steven – Jenner & Block LLP
• Gensburg, Matthew Thomas – Greenberg Traurig, LLP
• Harte, William J. – Cotham, Harwell & Evans
• Harwell, Mark C. – Cotham, Harwell & Evans
• Hercules, Larry K. – Hercules & Hampton, P.C.
• Heyman, Glenn R. – Dannen, Crane, Heyman & Simon
• Joyce, Edward T. – Edward T. Joyce & Associates P.C.
• Kantor, Myron – Kantor & Apter, Ltd
• Kelley, Eugene Joseph Jr. – Arnstein & Lehr, LLP
• Keryczynskyj, Leo
• Kramer, William – DLA Piper US LLP IL
• Kunkle, William Joseph Jr. – Cahill, Christian & Kunkle, Ltd.
• Laurie, Ty D. – Laurie & Brennan LLP
• Levin, Ellis B.
• Lipke, Douglas Joseph – Vedder Price P.C.
• Macey, Eric Neal – Novack and Macey, LLP
• Mandell, Michael S. – Horwood, Marcus & Braun
• Missner, David N. – DLA Piper US LLP IL
• Naughton, Mark P. Jr. – Rudnick & Wolfe
• Nicolau, Mary Terese – Cook County State’s Attorney’s Office
• Nitz, Owen – Nitz, Walton & Hammer
• Patenode, Timothy J. – Katten Muchin Rosenman LLP
• Raimondi, Nicholas – National Survey Service, Inc.
• Rasnak, Sandra – United States Trustee
• Robbins, Manuel J. – Robbins, Salomon, Wolf, Schlesinger & Miller, Ltd.
• Shapiro, Keith J. – Holleb & Coff
• Stamos, James A. – Law Office of Serpico, Petrosino & DiPiero
• Stuart, Jane L. – Assistant State’s Attorney’s Office
• Valle, Marion J. – Seay & Thomas, Inc.
• Weininger, Michael B. – Lupel Weininger LLP

The lawyers, said Goldstein in 2011, worked for their money.

“Even though my various attorneys probably walked out making some significant money,” she said, “when you look at it, it took five years of dealing with all these parties to try to put some deal together.”

No one came out whole. Creditors lost hundreds of thousands of dollars, she estimates, perhaps millions of dollars. Paid a percentage of what she distributed to creditors, Goldstein’s compensation of $90,000 for 12 years of work was modest. “If I had sold the property for $33 million, I could have retired.”

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