JUDGE IN REVSTONE CASE ORDERS RECEIVERSHIP; COMPANY DECLARES BANKRUPTCY

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An AmericanSwindlers.com Exclusive - December 4, 2012

(Update: December 4, 3:30 p.m.) – A review of the recently obtained REVSTONE INDUSTRIES bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware provides new insights into Kentucky businessman George Hofmeister’s financial dealings.  A few important points from the document:

1.  Despite trading on the REVSTONE name, the company itself is 100% controlled by Hofmeister’s ASCALON ENTERPRISES through a circuitous arrangement whereby the ‘managing members’ of REVSTONE INDUSTRIES LLC are actually trust entities for the benefit of Hofmeister’s children, and those trusts in turn have assigned their managing authority to ASCALON.  The trusts in question are The MEGAN G. HOFMEISTER Irrevocable Trust, The SCOTT R. HOFMEISTER Irrevocable Trust, and The JAMIE S. HOFMEISTER Irrevocable Trust.

2.  REVSTONE indicates its total number of creditors to be between 100 – 199.  Its largest single creditor is BOSTON FINANCE GROUP at $33.2 million, followed by SCHOELLER ARCA SYSTEMS at $10 million, JMP INDUSTRIES at $8 million, JEFFREY OWENS & PALM MARKETING at $3.2 million, DEXTER FOUNDRY at $1.8 million, Patrick O’Mara at $1.4 million, THULE HOLDINGS and THULE TOWING SYSTEMS at $1 million.  Another 13 creditors are listed with debts outstanding under $1 million.

3.  REVSTONE’S estimated liabilities appear to total between $75 – $100 million based on the amount of debt held by its top 20 creditors.

4.  REVSTONE’S estimated assets are stated to be between $10 – $50 million.

* * * * * * * * * *

(Original December 4 Story) – In a courtroom located in tiny Sutton’s Bay Michigan, a Circuit Court Judge on Monday ordered that many companies controlled by Kentucky businessman George S. Hofmeister be placed under the control of a court-appointed receiver, following the continued failure of Hofmeister’s REVSTONE INDUSTRIES and its affiliated companies to make payment on an outstanding loan by Clearwater, Florida specialty lender BOSTON FINANCE GROUP.

Readers of AmericanSwindlers.com will recall that earlier this year a judgment was entered against REVSTONE in favor of BOSTON FINANCE GROUP, with REVSTONE being ordered to satisfy an outstanding loan estimated to be approximately $27 million.  When REVSTONE failed to pay, BOSTON FINANCE GROUP sought a court appointed receiver to take control of the liable REVSTONE companies, thus ensuring new financial management that would take actions to satisfy the outstanding liability.  On October 22, 2012, the judge agreed to give REVSTONE a six week delay before appointing a receiver, setting December 3, 2012 as the new hearing date on the motion.  The REVSTONE companies subject to the receivership motion include REVSTONE INDUSTRIES, REVSTONE TRANSPORTATION, REVSTONE TOOL & ENGINEERING, POWER-TEC MANUFACTURING, U.S. TOOL & ENGINEERING, SALEEN, CONTECH FORGINGS, and SPARA.

Click above to read Revstone Industries, LLC petition for Chapter 11 bankruptcy

In an exclusive interview with a Revstone company senior manager, AmericanSwindlers.com has learned that what transpired in the courtroom earlier yesterday on the receivership hearing was nothing short of jaw-dropping.  Hofmeister appeared personally in the courtroom alongside his attorneys, along with representatives of BOSTON FINANCE GROUP and its attorneys.  Additional parties in attendance included the U.S. Department of Labor, which has a pending litigation against Hofmeister for alleged misuse of pension funds at REVSTONE-owned METAVATION, as well as representatives from the major American automakers and supply chain vendors who are customers of some of the REVSTONE companies .

A fuller report will be forthcoming as details are confirmed, but from yesterday’s interview AmericanSwindlers.com can report that REVSTONE offered to satisfy a portion of the outstanding judgment held by BOSTON FINANCE GROUP by providing $7.4 million yesterday in return for clearing the portion of the debt assigned to REVSTONE TRANSPORTATION.  BOSTON FINANCE GROUP argued that the remitted funds could only be placed against portions of the debt agreed to by the lender, but the judge ultimately ruled that should payment actually be made the funds could be directed by the borrower to satisfy the portion of the debt held by REVSTONE TRANSPORTATION.

Notwithstanding this attempt by REVSTONE to partially satisfy the judgment, the judge moved to the full receivership hearing, allowing interested parties to express their support or opposition to such a move.  BOSTON FINANCE GROUP is said to have offered a recommended candidate to be appointed as the receiver and to have presented the judge with information that they believe reflected financial mischief and mismanagement within Hofmeister’s companies.  BOSTON FINANCE GROUP’s attorneys cited among other things the failure to pay medical claims for its employees, the suspect movement of funds throughout the REVSTONE organization, the failure of REVSTONE to supply information and payment of Hofmeister’s American Express bill while other obligations went unpaid.  REVSTONE opposed the receivership move altogether.

Auto manufacturers in attendance and other original equipment manufacturers expressed their concern about management at REVSTONE and indicated no opposition to the receivership.  In fact, while a few expressed neither support nor opposition to the receivership, they indicated full support for the individual proposed by BOSTON FINANCE GROUP.

As anticipation built, a representative from the U.S. Department of Labor asked to be heard.  The message from the feds was crystal clear.  The U.S. Department of Labor told the judge they could not comment on the merits of a receivership, but that without equivocation the Labor Department recommended that Hofmeister and his closest managers be removed from having any control of certain pension funds within the REVSTONE companies.

With that the judge ordered a receiver be appointed to take control of Hofmeister’s REVSTONE companies, giving parties until 5:00 p.m. on December 4 to have the appropriate paperwork implemented.  Attorneys for the Kentucky based REVSTONE then immediately announced that the company would instead file for bankruptcy.

Late in the day on Monday, both REVSTONE INDUSTRIES and SPARA filed separate voluntary petitions for Chapter 11 Bankruptcy in the United States Bankruptcy Court, District of Delaware.   AmericanSwindlers.com has obtained copies of REVSTONE court filing and it is now available on this site.

AmericanSwindlers.com is following Monday’s developments very closely and will report back regularly as news breaks.

Comments (51)

  • Employee

    Freaking scumbag. Now I know why I had to file for bankruptcy over medical bills. Now the job is gone. Hope you rot underneath the freaking jail. IDIOT.

    Reply
  • Was an Employee

    I had unpaid medical bills and was TOLD by the Plans Administrator that the funds being withheld from employees paychecks were NOT going into the plan. I threatened legal action at the time.

    In addition, the Company’s leadership participated in fraudulent financial matters, including, false inventory reporting, making false Accounts Receivables for the purpose of securing loans, taking loans from pensions funds under false pretenses-including saying it was an investment in a new company when the money was actually used to pay-off debts at companies that were closed or closing. I for one checked with an IRS Agent on the legality of what was occurring and made certain I documented what i knew and kept copies!

    Reply
    • Fairfield Foundry

      I too submitted paperwork and firsthand info to the Boston Finance lawyers – a receivership is the only way to keep these companies in business. I hope they are able to recover all the various companys’ pensions as well.

      Reply
      • JK

        You should ask Boston Finance for a job! Hey, if forcing companies into receivership is your thing, you will fit right in.

        Reply
        • Fairfield Foundry

          George Hofmeister was leaving EVERYONE with no other option but receivership….there are MANY disgruntled employees from each and every one of his companies….safest place for him right now would be….PRISON.

          Reply
          • JK

            People are disgruntled because they only have one side of the story. Don’t lose sight of the fact that you were sold and your previous owner knew exactly what they were doing. In the business world its called getting rid of a problem. Buy hey, you need someone to blame. George & Obama is as good as it gets.

          • willtestify

            Please stop posting. You’re just embarrassing yourself – yes pseudo intellectual. Neophyte

          • JK

            Please stop answering my posts. You’re just showing how bitter you are – yes prevaricator. Tyro.

          • USCJK

            You got poopie pants JK

        • willtestify

          Don’t worry – you will never get a legitimate job again.

          Reply
          • JK

            How do you know I have a legitimate job? Oh, right, you know everything. Well, if I wont be getting a legitimate job ever again I guess I will just become a blogger.

    • JK

      Good for you! You are an outstanding ex-employee. I wish people like you worked in our government, you would run out of paper. I want to know if you would still consult the IRS Agent?

      Reply
      • was an Employee

        I think JK is one of the law breakers that helped run REVSTONE!!! Maybe, Myra, Bob L, Mark M. or others. Don’t worry I am naming you all and many others by name! No threats …just a “heads up”!!! Ha Ha Ha!!!!!

        Reply
        • JK

          Crap, you blew my cover!!! Those are all my friends you mention. Got some more friends you can name in a non-threatening way. Ha Ha Ha!!!

          Reply
        • Know what's going on

          Who are referring to when you say Mark M.? The only I am aware of was brought in through the purchase of MPI and left with the sale of MPI. Don’t see where he was helping run revstone.

          Reply
  • La

    So you have your kids evolved also, don’t surprise me they are cut from the same cloth. How much money did you hide away , is there anything in your dogs name.? I will pray that a bird takes a crap on your head, don’t look up

    Reply
  • Sparky

    I’m a employee at Fairfield Castings. Looks like. I’ll be job hurting again

    Reply
  • Ed

    We live in a free country, you are not being held hostage. Get another job! Receivership? You probably never went through one. All the banks care about is getting their money and they will liquidate everything under a receivership. No Jobs!

    I rather get a pay check.

    Ed

    Reply
    • JK

      Ed, you are a company man! Who cares about what all these trolls post! You understand that pay check is king. Here is a Bud Light to you Mr. company paycheck man!

      Reply
  • It's a New Day

    We at Contech Castings were very disappointed to find out that we are not part of the bankruptcy proceedings. Revstone Industries has filed for Chapter 11, while Revstone Transportation (including Contech, Metavation, and several unfortunate others) is unaffected.

    An infuriatingly condescending letter was sent out this afternoon by Revstone’s President, Myra Moreland, assuring us that it is “business as usual” for Revstone Transportation. As anyone reading this already knows, however, business as usual for Revstone means certain doom for the companies that are left…

    The few customers that remain will leave. Vendors will continue to go unpaid. Pensions will continue to be robbed. Hofmeister has made it obvious that he has absolutely no intention of running successful businesses, let alone growing them. He is simply bleeding them dry and discarding their empty shells.

    A receivership was likely the last hope for the remaining Revstone companies to recover. With all of the lawsuits in progress, and with people finally becoming wise to this disgusting crook, I still hold out hope that Hofmeister will soon be in jail, or perhaps with a bullet in the head.

    My fingers are crossed for the latter, as the world would be left a much better place.

    Eat shit, George.

    Reply
    • JK

      Hmmm. The world would be a much better place without trigger happy people like you. Maybe it would have been best that George never bought Contech and it would have been liquidated with your ass on the street. You been collecting a paycheck for how long now? Get a life. Not happy, find another job and move on. All the OEM’s have been destroying companies like your own because they are incapable of cutting costs so they force ridiculous pricing on the suppliers. Your company is not the only company that is subjected to this reality so stop feeling sorry for yourself. If you believe one man is to blame for all of this, then this site is doing it’s job. Keep reading and posting wonderful comments.

      Reply
  • Mike

    I worked for George a few years ago. I know him to be a decent human being. Has helped many people personally. Most people posting here have probably never met the man. Anytime banks are involved, they stand to profit by slandering and inciting an internal revolt. This is how they profit in a take over situation. If the owner of this site would come clean and tell everyone who he is working for I bet money its one of the banks. For all the employees, I feel bad that you are being played. Time will show that George cares about creating jobs in America in spite of all his adversaries claiming otherwise.

    Mike

    Reply
  • HERO TO ZERO

    Money makes you do weird things. It clouds your judgement. You judgement is further compromised when you have smart lawyers and smart accountants looking for companies in distress that can be squeezed a little further or ways to wiggle out of paying someone. Manufacturing is not dead in this country, it’s stupidity and greed that is alive. We owe Revstone nothing and they owe us nothing. I would have gladly went to work at a fast food restaurant instead of working for them but I liked my paycheck. When it was time to leave I did. Hoffmeister and crew created hope for thousands but greed and possibly survival clouded their judgement. I hated a lot of these people hoping they would never find work again. I don’t need to worry about that anymore because a lot of his cronies are dealing with their tainted past and will do so in the future. Karma is a bitch. He’ll get his in due time.

    By the way, I wonder what happened the the Ford GT40, McLaren F1, and some of the Saleens? If the feds can’t get their money, maybe they can visit some of their private residences

    Reply
  • Knows what's goin on

    Mark M. Meaning who? The only 1 I am aware of was brought in throught the purchase of MPI and also left with MPI when revstone sold them. Under current situations this was the best thing that could have happened for the MPI employees

    Reply
  • suc doobie

    We knew the first time Bob L. came into our company that he was a Snake Oil Salesman.. When the first thing your new owner does is leverage all your equipment, then doesn’t re-invest that money into your operation (that needs it!), nothing good can happen.. And, Myra is the 4th president in 4 years, I believe…?

    Reply

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