Bankruptcy filing halts sheriff's asset sale related to Libby businessman
A Lincoln County Sheriff’s Office asset sale slated for July 19 was canceled after the affected parties — Libby businessman Milferd “Mel” Siefke and his wife Ann Siefke — filed for bankruptcy.
The couple has been involved in lawsuits surrounding Mel Siefke’s business, Wildlife Recapture Taxidermy.
The Siefkes filed a voluntary petition for Chapter 11 bankruptcy June 22 in the U.S. Bankruptcy Court, District of Montana in Butte.
“Upon filing a bankruptcy petition a stay against most debt collection activities, including sheriff’s sales, goes into effect automatically,” Edward A. Murphy, a Missoula-based banlrupcty attorney representing the Siefkes, said via email.
Murphy wrote that he could not comment on why the Siefkes chose to file Chapter 11 or how they hoped to reorganize.
According to a United States Courts website, “a chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.”
According to the couple’s bankruptcy documents, the creditors with the largest unsecured claims are Evolve Custom LLC and Bank of Lake Mills, in the amounts of $1,623,075.31 and $1,116,142.39 respectively.
Both entities have brought debt collection lawsuits against Wildlife Recapture Taxidermy. The Evolve Custom LLC claim is described in the bankruptcy documents as a “claim for breach of contract for ‘natural habitats’ in Dick’s Sporting Goods stores.’” In the Bank of Lake Mills case complaint, six counts of breach of contract were alleged regarding a series of unpaid promissory notes. The bankruptcy documents state that the Evolve Custom LLC case is pending and the Bank of Lake Mills case is concluded.
Attorneys representing both entities did not respond to a request for comment by press time.
Dick’s Sporting Goods is also listed as a creditor with an unsecured claim. The amount of the claim, described as “a claim for delivery of goods,” was unknown at the time of the filing, according to the bankruptcy documents.
A meeting of creditors is scheduled for 1 p.m. Thursday, July 27 at the Hilton Garden Inn at 3720 North Reserve St. in Missoula.
The bankruptcy documents hint at aspects of the reorganization. For example, they state the “rights to the name ‘Wildlife Recapture Taxidermy’ and some tools” were transferred to Travis Pement of Libby, listed as a nephew, for $3,000 in April 2017. In the 12 months preceding the bankruptcy filing, the Siefkes reportedly sold a number utility and recreational trailers, a snowmobile, a car and an older motorhome.
On July 13, a document was filed stating Jack Deshazer of Libby was employed to provide “all services associated with the sale of commercial real property” the Siefkes own in the Westgate subdivision, described as their largest real estate holding in Lincoln County.