The News & Record
South Boston News & Record
and Mecklenburg Sun
Home   •   News   •   Sports   •   Classifieds   •   Community   •   Health   •   Entertainment   •   Obituaries   •   Opinions   •   Weather
Advertising | Contact | Register
Advanced Search

Scottsburg woman dies in Route 360 collision

A Scottsburg woman died Monday night after her vehicle was struck by a pickup truck as she was pulling out of her driveway onto Route 360 (James D. Hagood Highway)…

Growing pains aired at hemp industry summit

Regulatory uncertainty feeds sense of frustration

Mecklenburg schools health insurance costs soar

Difficult decisions lie ahead as trustees adjust budget for premiums


Comets battle back to beat Glass, 62-61

Varsity boys clinch return trip to Class 4 state tournament, get ready to play GW for no. 1 seed, region title





Carlbrook School files for Chapter 11 bankruptcy protection / February 18, 2016
No longer in operation and millions of dollars in debt, The Carlbrook School filed for Chapter 11 bankruptcy protection on Wednesday in U.S. Bankruptcy Court for the Western District of Virginia.

Carlbrook’s bankruptcy petition — divided between two entities, Carlbrook School, LLC and Carlbrook Properties, LLC — offers a glimpse of the financial woes that brought down the school, which closed in December after opening in 2002 at the stately campus site near Vernon Hill.

The owners are asking the Lynchburg-based bankruptcy court to approve an absolute auction of some 191 acres of land and buildings that include the historic Carlbrook “Rock House,” dormitories, classrooms and other structures that were erected to accommodate the student body at the year-round private boarding school.

At one time, as many as 130 students attended Carlbrook, which offered families able to pay the five-figure tuition an intensive program of academic instruction and therapeutic counseling for high school-aged students, many who had experienced trouble in other school environments. But beginning with the 2008 recession, Carlbrook saw its enrollment shrink until there were only around 40 students left on campus when the school closed.

The Chapter 11 petition filed by Carlbrook Properties, LLC provides the order of secured creditors that will be paid first from the proceeds of an auction. Topping the list is Halifax County, which has a $25,931.14 property tax claim against Carlbrook; another secured creditor is BB&T bank, which holds a deed of trust on the campus property and is owed $3.6 million on its loan.

A second filing by Carlbrook School, LLC lists scores of unsecured creditors that have also made claims for payment — after secured creditors are satisfied.

The largest of the unsecured creditors is Sodexho, Inc., a food services company that is owed $291,105.32. The next largest is Mastercard Business Card Services, owed $77,364.93.

A summary of the 20 largest unsecured claims against Carlbrook shows that the debt owed to those parties alone is just shy of $900,000. The filing lists many other creditors that owed unspecified sums.

The bankruptcy petitions, signed by Carlbrook founder Justin Merritt, estimate that the value of the school’s remaining assets is between $100,001 and $500,000, and the size of its estimated liabilities is between $1,000,001 and $10 million.

In addition to filing for Chapter 11 protection, Carlbrook has asked the court to approve Woltz & Associates to market the property and conduct an auction there. No date is given for a possible auction. Carlbrook is being represented in the proceedings by the Roanoke law firm of Magee Goldstein Lasky & Sayers, P.C.

Tell-a-Friend | Submit a Comment


Advertising Flyer

Find out how you can reach more customers by advertising with The News & Record and The Mecklenburg Sun -- in print and online.