If bankruptcy hearings in Utah and California courts go smoothly, First Security Bank and Zions National Bank could receive most of the money and land that Triad America has promised them by the end of the year.
The details of multimillion-dollar settlements between Triad America and the two banks will be aired in U.S. Bankruptcy Court at 2 p.m. on Sept. 9 in Salt Lake City.If Judge John H. Allen rules that the settlements are fair, the two banks are one step closer to recouping some of the heavy losses they incurred when Triad America and several subsidiaries went bankrupt.
The hearing will determine the fairness of seven settlements agreed upon between Triad America Trustee R. Todd Neilson and major creditors.
Notice of the hearing will be sent to more than 200 creditors, said Danny Kelly, attorney for Neilson. Any of the creditors could come to court to object to the settlements, but Kelly doesn't believe that will happen.
"We don't think the hearing on the settlements will go past that afternoon. Unless there are objections, it will be over in 10 minutes."
First Security would receive title to 190 acres of undeveloped land and cash from the sale of an oil company in payment for a $12.9 million debt owed to bank. The land is adjacent to the Salt Lake International Center, west of the Salt Lake International Airport.
"First Security could start getting real estate turned back over to them by October," Kelly said.
The remainder of the $12.9 million debt would come from the sale of assets of Edgington Oil Co. Inc. and from the $32 million settlement Adnan Khashoggi has agreed to make.
First Security would get approximately $2 million from the settlement, Kelly said. That payment is due Oct. 31 and First Security could reeive its money shortly thereafter.
In addition, First Security would receive between $4 million and $5 million from Edgington Oil.
Zions is also expecting an undisclosed sum of money from Edgington Oil.
However, those transactions must be approved by Judge Calvin Ashland in a California bankruptcy court before the banks receive their money from the California oil company.
If the settlement is approved by the California court, the two banks may get some money before the end of the year, Kelly said.
In addition, Zions has agreed to take title to 60 acres of undeveloped land at the Salt Lake International Center as partial payment for a $4.5 million debt.