Attorneys representing Express Financial Services, based in Green Tree, Pennsylvania, filed documents last week in U.S. Bankruptcy Court in Pittsburgh, according to a recent article in The Pittsburgh Tribune-Review. Despite earnings revenues of $65 million in 2005 and $45 million in 2006, the company shut its doors in mid-September and filed for filed for bankruptcy protection from creditors on November 21, 2007.
In addition to failing to pay countless title examiners, abstractors and others for services they provided to the company, the firm's closure also left 100 people without jobs. Although the company's bankruptcy filing did not provide a detailed accounting of its total liabilities and assets, it estimated that it had less than $10,000 in assets. The company also offered a list of its 20 largest unsecured creditors, showing they are owed amounts ranging from $21,945 to $800,000 with a total number of creditors exceeding 12,440.
"Deterioration of the real estate climate together with the subprime lending market crisis compounded the debtors ability to operate profitably," attorneys wrote in the court-submitted documents. Express Financial is being represented by Campbell & Levine LLC, a Pittsburgh-based law office.
The documents indicate that the company was severely impacted in September 2006 when Chase Manhattan Bank ceased doing business with the company. The article indicated that the company attempted to minimize Chase's action by expanding its business and attracting new business. Yet, this growth strategy failed and the company stated in court documents that "there was no foreseeable return to profitability under the present and foreseeable economic conditions."
Several members of Source of Title's abstracting and title examining community were negatively impacted by Express Financial's recent hardship according to various posts on our site's "general discussion forum."
Nina Gladen of Search Services Trust of Leipsic, Ohio wrote on November 15, 2007 that Express Financial owed them money for work Search Services had completed. Others commented at that time that they, too, were never paid for services they completed for the title company. Source of Title will continue to follow this story and provide its members with updates as they become available.
Among the creditors that Express Financial Services listed in the filing were Stewart Title of Houston; Triangle Real Estate Services of Westerville, Ohio; Biela Title of Ida, Michigan; Swft Closing Services of Beachwood, Ohio; and Accelerated Abstract Services of Springboro, Ohio.