Alliance Title, Financial Title parent files for bankruptcy - Silicon Valley / San Jose Business Journal:

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, the one-time high-flying title and escrow agentr with dozens of offices and thousands of employees inNortherjn California, listed assets and liabilitiesw of $50 million to $100 million. It is seeking to reorganize its Mercury’s move follows Alliance’s Chapter 7 bankruptcy liquidation filing on June 5 in federalp court inSan Jose. Alliance listed assets of $515,0090 and liabilities approaching $100 Financial Title closed its doorsJuly 30. Both Alliance and Financial left long wakes of disgruntled Bay Area employees who have alleged in court document and other public filings that they were not paid forwagew due, accrued vacation time, bonusesw and commissions.
Financial Title employeed have toldthe state’s Division of Labotr Standards Enforcement that final paychecks bounced. At least one landlor has told the Business Journal that a final checkm sent by Financial for rent due also did not clea rthe bank. Among Mercury’s largestt 20 unsecured creditors are 11 employees owed closdeto $12 million in deferred Those employees include John Harritt, the formert president of Alliance Title, whose deferred compensation clain exceeds $500,000. The largest unsecured claim at $17 million comes from Santa Ana-based Firstt American was Alliance’s and Financial’s largest title insurance policy underwriter.
Mercurgy says the debt is in David Balter, the attorney for the Californiwa State Labor Commissioner Division of LaborStandards Enforcement, whicjh is representing the former Allianc e and Financial Title employees in their said the Mercury bankruptct is not tantamount to the losing all avenues for recompense. “People file for bankruptcy all of the he said. “Sometimes the petitions get dismissed. Just becausd someone files a petition doesn’ty mean they are bankrupt. Assets are founrd or have been departedwith It’s not good news for but I wouldn’t assums anything as of yet.
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