Posted on 08/10/2007 7:59:36 AM PDT by SmithL
A federal judge on Thursday ordered Your Black Muslim Bakery, a 40-year-old purveyor of all-natural desserts that has been linked to the slaying of an Oakland journalist, to liquidate its assets.
U.S. bankruptcy Judge Edward Jellen rejected a request by the troubled Oakland bakery to dismiss bankruptcy proceedings, saying the bakery's management problems are getting worse, not better.
"I think every fact dictates in favor of Chapter 7," he said. "The circumstances are the same or worse than they have been. Management problems are certainly no better."
The business is more than $900,000 in debt to the IRS, individual creditors and Davis Mortgage Investment Fund of Oakland. Its assets are about $1.9 million, according to its Chapter 11 bankruptcy filing in October.
The bakery's chief executive, Yusuf Bey IV, 21, is in custody on kidnapping charges after his arrest Friday in a police raid on the bakery, which was shuttered.
Another bakery employee, handyman Devaughndre Broussard, 19, was later arrested and police say he confessed to last Thursday's slaying of journalist Chauncey Bailey, editor of the weekly Oakland Post, who was investigating the bakery's bankruptcy proceedings.
Jellen ordered the bakery to enter Chapter 7 in July. But Bey asked the judge to reconsider because a potential buyer had been found.
Attorney Fayedine Coulter, who represents the bakery, did not identify the buyer at Thursday's hearing in Jellen's Oakland courtroom.
"Because of the newsworthiness of this case, people are withdrawing their names and support. But they do exist," she said. Coulter had no further comment on the case.
According to court documents and public records, Your Black Muslim Bakery owes about $200,000 to the IRS; $100,000 to a creditor, Richard Stovall; and $11,000 to another creditor, Patricia Hill. In 2005, the bakery borrowed $625,000 from an Oakland mortgage company, ...
(Excerpt) Read more at sfgate.com ...
A few years ago, the Oakland Tribune ran an article on the “creation of jobs” program under the Clinton administration. Essentially it boiled down to this: The fed gave Oakland hundreds of millions of dollars, to be dispersed as loans to anyone who would promise to create a business and employ others. Every increment of $30,000 given out was defined as one job created. Among the borrowers was a member of the Bey family, who soon defaulted on the loan, like most of the other borrowers, who either skipped town, or had their businesses fold in short order. I’m guessing that an investigation of this loan of over $600K would show a link to that program.
Create 20 jobs with a store front bakery that would be some trick. If what you suggest is true the loan officer would be guilty of gross negligence as would the government official that signed off for the loan guarantee.
But I would not be surprised.
Right! I went to a soul food place in L.A. because I was hungry once. Blacks have a very secret recipy for bean and hamhock stew to die for. And cornbread that doesn't crumble. The Food Channel should get that Italian babe to cook soul food. Drinking beer instead of wine.
“creation of jobs program”
This was the thrust as a necessary solution for the high crime rate in Oakland now being touted for resurrection by Dellums & co. as reported on NPR this AM.
The education system in Oakland is and has been a failure for decades and these fools think that the illiterate thugs that it produces want to work or could do a meaningful task? Oh! Puleeessseeee ... my sides are about to split!
Paging Buffy ... Ms. Buffy, ... Ms. Buffy please report to Oakland City Hall asap.
‘making his bones’ means?? (I don’t speak ebonics).
dough!
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