Spokane couple Steven and Morgan Wylie, who owned a number of rental properties and have been involved in real estate development here, have filed for Chapter 7 liquidation in U.S. Bankruptcy Court, listing assets of $997,000 and debts of $12.4 million, which they say are mostly business-related.
Nearly $11.4 million of that indebtedness is to creditors holding unsecured nonpriority claims, including $2.5 million owed to Spokane's Global Credit Union, $2.3 million to Everett, Wash.-based Coastal Community Bank, $2 million to Bellevue, Wash.-based Charter Bank, and more than $2.5 million to entities owned by Greg Jeffreys, of Spokane.
The Wylies were involved in a number of real estate business ventures here with Spokane developer Todd J. Rothrock and his wife, Misty Rae, who filed for Chapter 7 liquidation about six months ago, listing debts of $5.8 million and assets of $932,000. Several of those ventures were through a company named Rockwyler Development LLC, in which the Wylies say they were 50 percent owners, and it isn't clear whether some of the debts listed for that company are shared by both couples.
The Wylies' bankruptcy attorney, Dan O'Rourke, couldn't be reached for comment. He had said earlier in regard to the Rothrocks, though, that they had relied on rents to pay mortgages on properties they owned, and the recession cut deeply into that revenue.
The filing lists nine companies in which the couple have or had some ownership interest or oversight involvement. Among those, along with Rockwyler Development, were Oakley 1B LLC, Mansmith LLC, Garfield Group LLC, and Campus Group LLC. The Wylies had 50 percent ownership in Oakley, and just 25 percent, 10 percent, and 7.5 percent ownership interests in Mansmith, Garfield Group, and Campus Group, respectively, the filing says.
Also, the filing lists 10 rental properties here that the couple own and say they plan to surrender.