looks like brook was running a real scam::: is there anyway this could neg affect aleritas,, ie,,lawsuits?
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By MIKE CORN
mcorn@dailynews.net
Hope fell flat on its face last week for the financially struggling Brooke Corp.
Today, only 13 Brooke employees are working at the processing center in Phillipsburg, and only three at the company's headquarters in Overland Park.
It was a week of highs and lows.
On Monday, it was announced that Brooke Insurance would be purchased by two Kansas men, including Terry Nelson, CEO of Long Island-based Nelson Farms and vice chairman of First State Bank in Norton.
By the end of the week, he and partner Lysle Davidson, who operates an insurance agency in Johnson in far southwest Kansas, withdrew the offer, according to the Kansas City Star.
"It was much different from what was represented to us," Nelson told the newspaper.
The apparent problem rests with the number of franchisees left within Brooke.
While Nelson told the Star that the offer was contingent upon 350 agencies remaining with the network, a Chapter 11 bankruptcy filing on Tuesday reported that only 250 agents remained. At one time, Brooke had nearly 900 agents nationally.
With the withdrawal, Albert Reiderer, the special master appointed to handle the affairs of the company, also appointed as trustee by the bankruptcy court, cut the ranks of employees on Friday.
Phillipsburg had maintained a work force of slightly more than 60 employees. After Friday, only 13 remained.
That skeleton staff is expected to process remaining affairs of the company and make sure that agents get their commissions.
"Other than that," Reiderer told the Star, "we won't be functioning in any insurance way. We'll be functioning to wind down the (bankruptcy) estate."
That bankruptcy petition -- for both Brooke Corp. and Brooke Capital Corp. -- was filed Tuesday, with Riederer being named trustee a day later.
While observers and participants in the struggling company have suggested that bankruptcy might be the alternative, such a move has been in the works since Oct. 10, when the board of Brooke Corp. voted to file bankruptcy.
In its filing, the company indicated that was unlikely that the entire company could be reorganized and rehabilitated.
Prior to the latest round, there have been a number of layoffs within the Brooke organization. Prior to Friday, 62 employees had remained on the job in Phillipsburg.
Notice of the bankruptcy filing was sent out via a filing with the Securities and Exchange Commission. Both Brooke Corp. and Brooke Capital Corp. had been publicly traded on Nasdaq and the American Stock Exchange until trading on both stocks was halted.
That SEC filing indicated that bankruptcy court had approved joint administration of both companies, with Reiderer as the trustee.
Brooke Corp. listed assets of $512.9 million and liabilities of $447.4 million. Brooke Capital Corp. listed assets of $106.2 million and total debts of $111.7 million.
The bankruptcy petition did not include Generations Bank, a $130 million thrift that was told late last week to either find a merger partner or sell the bank by Dec. 15.
The bankruptcy petition also did not include Aleritas Capital, a finance company that specializes in insurance-related lending.
8 comment(s) found
more of the same: 11/26/2008
I am a former Brooke franchisee and was lied to about the size of the book of business that I was sold. Just like the investors in this story but, I was already involved with them before I found out. The co is awash in lies and deceipt. I will learn from this experience and move on.
(Posted by: brookeisdone in PA)
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the loans : 11/13/2008
I would love how brooke can file bk and stick this high price loans with the agents. That should be against the law to sell those loans and file bk.
(Posted by: unknown)
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Now the table has turned: 11/7/2008
Funny how employees were ok w/ the lies as long they were getting paid!! Meanwhile the agents (who actually made the money) have lost everything but the employees overlooked that. You are crying b/c you have not got paid for a few weeks...try months for agents!!! no tears here for the employees.
(Posted by: Boo HOO)
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when are lies crimes: 11/4/2008
Everyone talks about "lies". I wonder when "lies" become crimes. Not just unethical -actual crimes that should be Prosecuted. When the senior officers of Brooke "lied" to the franchsiees aboutthe value of the business that was bought. We all hope that proves to be a crime so some of the senior officers will have to defend themselves in front of a court.
(Posted by: Free Ralph)
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no pay and possible relocation: 11/4/2008
These people promised us pay when they laid us off on the 21st. Now we have to go through a bunch of sh** to even have a chance at anything. Now several families are looking into relocation just so we can make a buck. Brooke screwed us over and i hope they get the same.
(Posted by: sickof brooke)
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Brooke: 11/3/2008
I believe Rob was the author of "Death of a Salesman". I would be interested in reading "Death of a Company". What are the true reasons for this failure. Too young Exs, change of leadership several months ago, grew too quick, lies, etc. This was a very good concept for a company.
(Posted by: Past Employee)
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"much different ": 11/3/2008
Welcome to the world of Brooke. Every agent was lied to like this. Inflated agency figures, promises that were not kept, etc. I certainly have some sympathy for those workers who were just data entry, etc. To all those who were complicit in the lies about accounting, failure to pay agents, etc. - Now its your turn to have about 2-3 years worth of grief.
(Posted by: WarrenG)
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no paychecks: 11/2/2008
To add to this story there were no paychecks sent out to the employess that were laid off Oct. 21st, just because the company has declared bankruptcy.
(Posted by: they fed us lies)
AI
