Billy Abraham bankruptcy filings halt auctions of Downtown El Paso buildings

William "Billy" Abraham, an El Paso businessman with a large portfolio of Downtown buildings, on Tuesday stopped scheduled auctions of several of his properties by filing for bankruptcy protection for himself and one of his companies.

Abraham and his Franklin Acquisitions LLC, listed in El Paso Central Appraisal District records as owner of some of his properties, each filed for Chapter 11 bankruptcy protection Tuesday morning, according to bankruptcy court documents. Abraham is listed at the sole member of the Franklin Acquisitions corporation.

Abraham has a portfolio of at least 15 Downtown buildings, including several prominent, historical ones that have been deteriorating for years.

As many as 11 of his El Paso properties, including six mostly vacant Downtown buildings, were scheduled to be sold at a sheriff's auction and at a foreclosure sale Tuesday morning. Officials removed the buildings from the scheduled sales when notified Tuesday morning of the bankruptcy filings.

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The scheduled auction drew a large crowd of possible bidders on the third floor of the El Paso County Courthouse. Other properties besides Abraham's also were set to be auctioned, as occurs at the monthly sales.

The sheriff's sale was aimed at paying a $1.03 million court judgment against Abraham tied to a contract dispute with the son of late singer Juan Gabriel for a 2015 concert by the performer. Abraham's historic Toltec Club Building also had been scheduled for a foreclosure auction to pay off a delinquent loan.

Abraham, who was outside the County Courthouse on Tuesday morning, said he had no immediate comments about the bankruptcy filings and cancellation of the auctions of his properties.

Abraham, the son of late prominent El Paso criminal defense lawyer Joseph "Sib" Abraham, for years has said he has a master plan to redevelop his Downtown buildings. But he has never implemented that plan, and his buildings continue to deteriorate.

He continued to hold on to his buildings even as he served 1½ years in state prison in a 2010 pedestrian death.

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"The (federal) bankruptcy court now takes control of all of Abraham's assets in terms of what he can and cannot do," said Michael Shane, an El Paso lawyer representing IGSFA Management, which has the $1.03 million judgment against Abraham for the Juan Gabriel concert. That Florida company is operated by Juan Gabriel's son.

"We will file our (debt) claim in bankruptcy court," Shane said.

Victor Firth, an El Paso lawyer representing two clients with unpaid debts on three of Abraham's properties, said, "I am not surprised he filed (for bankruptcy), but Chapter 11 bankruptcy is an opportunity for him and his creditors to be heard in federal court."

Firth added, "I'm sure my client and other creditors will file claims" in bankruptcy court.

One of Firth's clients, The Olive Organization, has a lien on Abraham's Toltec Club building, at 717 E. San Antonio Ave., which had been slated for a foreclosure sale Tuesday.

Chapter 11 bankruptcy can be a lengthy process, Firth noted. However, creditors could ask the bankruptcy court to lift the bankruptcy-filing-induced stay on the sale of some of Abraham's properties so the sales could go forward, he said.

Abraham's personal bankruptcy filing and the Franklin Acquisitions filing each list debts of $1 million to $10 million. Abraham's personal bankruptcy filing lists his largest unsecured debt as $22,505 on a Chase Bank credit card. The Franklin Acquisitions bankruptcy filing lists the U.S. Internal Revenue Service as having the largest unsecured debt, but no debt amount is listed.

Abraham's bankruptcy filings list 17 creditors with secured debts, including IGSFA Management, The Olive Organization and Charles Haddad, another Firth client with liens on two Abraham properties: a vacant warehouse at 910 E. First Ave., in Downtown, and vacant land on Westover Drive in West El Paso.

Vic Kolenc may be reached at 546-6421; vkolenc@elpasotimes.com; @vickolenc on Twitter.

Auction list

These six Downtown buildings, owned by William "Billy" Abraham and his corporation, were on the canceled auction list:

300 E. San Antonio Ave., Caples Building: 108-year-old, Trost-designed, mostly vacant, seven-story building was headquarters for notable Mexican political figures during the Mexican Revolution.

717 E. San Antonio, Toltec Club building: 107-year-old, trapezoid-shaped building housed a social club, opened in 1910, for El Paso businessmen.

201 N. Stanton, former Newberry Department Store: 106-year-old, Trost-designed, vacant building.

212 W. Overland Ave.: 106-year-old building once was a Chinese laundry and later housed restaurants in Downtown Union Plaza’s Duranguito neighborhood.

410½ E. San Antonio Ave.: The Press Bar.

910 East First Ave.: Vacant former warehouse.