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The proposed
asphalt plant
in Glendale Springs 
has been stopped!
MANY thanks go out to all those who helped
protect the native pristine air and the New River water quality! 

               
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                                AN AUGUST 2, 2022 UPDATE ON THE PROPOSED ASPHALT PLANT:

The determination as to whether there will be an asphalt plant in Glendale Springs has been tied up in various courts for several years.  Back on December 18, 2020, the N.C Supreme Court ruled that the N.C. Court of Appeals made an error in its ruling in the PIDO (Polluting Industry Development Ordinance) case it ruled on (that ruling being issued on May 22, 2019).  The ruling the N.C. Court of Appeals made was based on the fact that in a June 22, 2015 letter from Ashe County Planning Director Adam Stumb, he made a non-judgmental statement in that letter stating that the information presented in the asphalt plant PIDO permit application looked ok (and the preceding is not a quote, but is a summary of that statement).  The N.C. Court of Appeals wrote in their ruling that this statement was in fact a judgmental statement...and because of that fact:  they ruled that the asphalt plant PIDO permit must be awarded.

The Supreme Court on December 18, 2020 ruled that the N.C. Court of Appeals had erred concerning that statement in Mr. Stumb's letter.  This case was sent back to the N.C. Court of Appeals, for them to rule on again (and their new ruling would be based on the fact that the statement in Mr. Stumb's June 22, 2015 letter will not be considered in their new ruling).

 
On Tuesday, August 2, 2022,  the N.C. Court of Appeals ruled against Appalachian Materials. LLC.

When Appalachian Materials, LLC. applied for a permit for an asphalt plant, they had to get a Polluting Industries Development Ordinance (PIDO) permit. That permit stated that a polluting industry cannot receive a permit to begin operations if it is located within 1,000 feet of a commercial building.  There is a shed that was used to store hay that was later sold. That building was closer than 1,000 feet from the proposed asphalt plant. The Ashe County Planning Board had ruled that this shed was not a commercial building, and it had ordered Ashe County Planning Director Adam Stumb to approve the PIDO permit. 
 
However, on Tuesday, the Court of Appeals ruled that the Planning Board's ruling was in error, and this shed was in fact a commercial building.  Thus, the PIDO permit should not be approved.
 
Back on October 3, 2016, the Ashe County Commissioners repealed the Polluting Industries Development ordinance and replaced it with the High Impact Land Use Ordinance (HILUO). That ordinance lengthened the 1,000 foot "safe" distance.
 
Thus, because of the HILUO:  an asphalt plant can never be operated in Glendale Springs!

Below is a timeline of events concerning the proposed asphalt plant.


Some of the information presented below is formatted in 5-column charts.  It may be beneficial to view this using a computer with a monitor.

All entries below relating to the Ashe County Superior Court case will be in red text. 
All entries below relating to the N.C. Court of Appeals case will be in blue text. 
All entries below relating to the federal Radford Quarries, Inc. Bankruptcy Court case will be in green text.
All entries below relating to the federal Dr. Danny James (DJ) Cecile, Jr. Bankruptcy Court Case will be in orange text.  
All entries below in black is information not related to a specific court case.
​
To be able to operate an asphalt plant in Ashe County, an entity in 2015 needed to have three different permits (and FYI:  the application for these permits for the Glendale Springs, N.C. location was made in 2015):
**    An Ashe County-issued Polluting Industry Development Ordinance (PIDO) permit
**    An Ashe County-issued watershed permit
**    A State-issued air permit.

An entity named Appalachian Materials, LLC applied for those permits on June 5, 2015, so it could operate an asphalt plant at the existing quarry on Glendale School Road in Glendale Springs, N.C., which is on land owned by Radford Properties, Inc.

Per the N.C. Secretary of State's website:  Danny J. Cecile, Sr. is the President of Radford Properties, Inc., and Danny James (DJ) Cecile, Jr. is the Vice President of Radford Properties, Inc.

Radford Quarries, Inc. filed for chapter 11 bankruptcy on July 26, 2019 in the federal Bankruptcy Court for the Western District of N.C.  

Per the Bankruptcy Court's Form #202 submitted to the Bankruptcy Judge: Appalachian Materials, LLC is a wholly owned subsidiary of Radford Quarries, Inc.

Per the re-organization plan submitted to the Bankruptcy Judge by Radford Quarries, Inc.:  Radford Quarries, Inc. operates a stone materials production and sales business from locations in Ashe, Avery, Watauga, and Wilkes Counties in North Carolina. It also operates one quarry located in Johnson County, Tennessee. 

In the timeline below, several entities will be mentioned.  Some information about these entities follows.

Per the N.C. Secretary of State's website:  Danny J. Cecile, Sr. is the President of Radford Quarries, Inc. (which legally used to be known as Radford Quarries of Boone, Inc.) and Dr. D.J. Cecile, Jr. is a Vice President of Radford Quarries, Inc. 

Per the re-organization plan submitted by Radford Quarries, Inc. in its bankruptcy case:  it states that Danny Cecile, Sr. and Dr. D.J. Cecile, Jr. collectively hold 100% of the equity Interests in the Debtor (which in layman's terms mean they own all the stock of Radford Quarries, Inc.).  On "Official Form #101: Voluntary Petition for Individuals  Filing for Bankruptcy" for the Dr. Danny James (DJ) Cecile, Jr. bankruptcy case:  it shows that in answering the question "Any business names and employer identification numbers (EIN) you have used in the last 8 years," he lists "Radford Quarries, Inc." and "Perry Farms, LLC." 

Per a motion put forth to the Bankruptcy Judge in the Radford Quarries, Inc bankruptcy case, it was stated that Danny J. Cecile, Sr. and Dr. D.J. Cecil, Jr. created an entity named Perry Farms, LLC.  Radford Quarries, Inc. leases 30 acres of land (in two parcels) in Glendale Springs, N.C. from Perry Farms, LLC.  Concerning the Dr. Danny James (DJ) Cecile, Jr. bankruptcy case:  on PACER.com's posted Document #5, it states that Dr. DJ Cecile, Jr.  owns 53% of Perry Farms LLC and his wife (Jennifer Cecile) owns 47%.

FYI:  PACER.com is the internet platform used by the Federal Government to show folks what is taking place with all federal court cases.  All bankruptcy cases are federal court cases.  The two bankruptcy cases referred to here are out of the Western N.C. District Bankruptcy Court.

Per the N.C. Secretary of State's website:  Danny Cecile, Sr. is the president and Dr. D.J. Cecile, Jr. is a vice president of Radford Properties, Inc.  Radford Quarries, Inc. leases another 32 acres of land in Glendale Springs, N.C.,  and 28 acres of land at 5946 Bamboo Road in Boone, N.C., from Radford Properties, Inc.

Per the N.C Secretary of State's website: Dr. D.J. Cecile, Jr. is the registered agent and manager of Appalachian Capital, LLC.

Timeline of events:

* September 25, 2012:  Danny Cecile, Sr., the father of Dr. D.J. Cecile, Jr., produced a pistol from his pocket in front of Tim Latham and Matt Gant (both being mine/quarry inspectors for the N.C. Department of Environmental Quality {N.C.D.E.Q.}). Mr. Cecile stated the pistol was in case any of the inspectors got “out of line.”  This action scared away the N.C. D.E.Q. inspectors until their next inspection on December 12, 2015 (which was over 3 years later). To view two emails to and from State employees (which means they are considered public knowledge):  click here ( X ) to see an email to Sheila Holman (who is N.C. Department of Environmental Quality’s Assistant Secretary for the Environment) and click here ( X ) to see an email from Tim Latham (who was one of the above mentioned inspectors).

* June 5, 2015:  the Planning Director of Ashe County (Adam Stumb) received an application for a Polluting Industry Development Ordinance (PIDO) permit allowing an asphalt plant to go into operation at the quarry on Glendale School Road in Glendale Springs, N.C. (which is located on property owned by Radford Properties, Inc.). This application was filed by Appalachian Materials, LLC. 

* October 19, 2015:  the Ashe County Commissioners enacted a moratorium that temporarily stopped the County from approving any PIDO permits until April 19, 2016, with there being a possibility of a 6-month extension. 

* February 29, 2016:  a State of N.C. air permit was received by the Ashe County Planning Director for the proposed asphalt plant in Glendale Springs

* April 4, 2016:  the Ashe County Commissioners extended the moratorium on issuing PIDO permits for another 6 months, until October 19, 2016.  

* April 7, 2016:  Appalachian Materials, LLC went to court demanding that the Ashe County Planning Director (Adam Stumb) make a determination concerning the approval of their PIDO permit. 

* April 20, 2016:  Mr. Stumb denied the approval of the PIDO permit. 

* May 16, 2016:  Appalachian Materials, LLC appealed this denial of the PIDO permit to the Ashe County Board of Adjustments. (FYI:  the Ashe County Board of Adjustments is comprised of the members of the Ashe County Planning Board).

* October 3, 2016:  the Ashe County Commissioners repealed the Polluting Industry Development Ordinance (PIDO) and enacted a High Impact Land Use Ordinance (HILUO) to protect Ashe County citizens from high impact land uses.

* October 6, 2016:  the Board of Adjustments held a meeting to gather information for the PIDO appeal.
​

* December 1, 2016:  the Board of Adjustments made a ruling that negated Mr. Stumb's denial, thus allowing Appalachian Materials, LLC to obtain its PIDO permit.

* December 30, 2016:  the Ashe County Commissioners appealed this ruling in Ashe County Superior Court.
 
* July 7, 2017:  Adam Stumb informed Appalachian Materials, LLC that the Ashe County Planning Board was immediately ceasing their processing of the watershed permit that had been applied for in June of 2015 (since they had not responded to his many requests for additional information).
 
* November 30, 2017:  The Superior Court judge ruled in favor of issuing a PIDO permit.  The Ashe County Commissioners soon there-after appealed this ruling to the N.C. Court of Appeals
 
* April 26, 2018:  the Planning Board voted to give Appalachian Materials, LLC a watershed permit for operating an asphalt plant in Glendale Springs, N.C.
 
* May 10, 2018:  the Ashe County Commissioners voted to appeal the issuing of a watershed permit to Superior Court.  To read that appeal (which you will see is addressed to the Ashe County Watershed Review Board....which is composed of the members of the Ashe County Board of Adjustments...which is composed of the members of the Ashe County Planning Board):  click here ( X ).
 
* May 22, 2019: the N.C. Court of Appeals unanimously voted in favor of Appalachian Materials, LLC receiving a PIDO permit
 
* June 4, 2019:  the Ashe County Commissioners decided to petition the N.C. Supreme Court to take a look at the Planning Board’s order to issue a PIDO permit for the construction of an asphalt plant.  The total cost of that legal action was paid for by the Protect Our Fresh Air chapter of the Blue Ridge Environmental Defense League.  To read this petition:  click here ( X ).  To read another brief later filed by the County:  click here ( X ).

* July 26, 2019:  Radford Quarries, Inc. filed for bankruptcy.  Per the re-organization plan filed on Feb. 20, 2020 by Radford Quarries, Inc., the reason for them filing for Chapter 11 bankruptcy is: they lost revenue in 2018 as a result of record high levels of rainfall, which significantly affected its ability to mine and produce crushed stone. In addition, medical issues incapacitated Danny Cecile, Sr., the long-time manager of Radford Quarries' operations. Dr. D.J. Cecile, Jr., who worked for Radford Quarries, Inc. primarily in sales and administration, was forced to take the lead role in directing mining operations. As a result, Radford Quarries, Inc. saw additional diminished production levels while Dr. D.J. Cecile, Jr. learned the nuances of his new role. Due to its diminished revenues, Radford Quarries, Inc. became unable to meet its secured debt service requirements. Radford Quarries, Inc. filed its Chapter 11 case to prevent repossession of its equipment by secured creditors, to restructure its debt obligations, and to streamline the settlement of claims. 

Per Bankruptcy Form #202 filed by Radford Quarries, Inc.:

** Radford Quarries, Inc. owns land at 5544 and 5605 Bamboo Road in Boone, N.C., and a parcel of land at 555 Doe Creek Road in Butler, TN. These 3 parcels were valued at $1,002,600.

** Five entities have unsecured priority claims (which are owed tax bills) against Radford Quarries, Inc. that total $38,368.53 collectively.
** Forty-seven entities (which include Dr. D.J. Cecil, Jr.: $158,909.17, Danny J. Cecil, Sr.: $222,551.92, Jennifer Cecil: $234,147.52, and Margaret Cecil:  $148,701.12) have unsecured non-priority claims against Radford Quarries, Inc. that total $1,459,345.70. That figure also includes debts to two law firms:  Poyner Spruill:  $243,348.42 and Waller, Lansden, Dortch, & Davis:  $88,043.28....as well debts for fines totaling $57,423.00 from the federal government's Mine, Safety and Health Administration...which is responsible for inspecting quarries.
 
* January 2, 2020:  two entities filed amicus curiae documents supporting the arguments put forth by the County.  In Latin, "amicus curiae" means "friend of the court."  These two documents are petitions to the court asking for permission to put forth their reasons why they believe the arguments put forth by the County are strong and valid.   The two entities submitting these documents were the N.C. Association of County Managers (and their amicus curiae can be viewed by clicking here ( X ), and the Protect Our Fresh Air Chapter of the Blue Ridge Environmental Defense League (and their amicus curiae can be viewed by clicking here ( X ).

* February 19, 2020:   Radford Quarries, Inc. submitted an amended re-organization plan.  In this plan, the creditors are prioritized.  The proposed payments to the various creditors follows.  The creditors are listed in the order of their ranking in the priority:
  • all claims for taxes will be paid-in-full (if not before) within 5 years (via 5 payments to be made on July 15th of the next 5 years, and these payments will include a yearly interest fee)
  • Bamboo Road, LLC (which is owed $265,000) will be paid (if not earlier) via $1,500 in monthly payments through 2026 (starting the first month after the re-organization plan has been approved), and then a final payment for the remaining funds due will be made on January 1, 2027.
  • Capital Bank (which is owed $186,000) will be paid (if not earlier) via 60 equal monthly payments (that have a 5%/year pro-rated interest fee included)
  • Caterpillar Financial Services, Inc. (which is owed $418,179.96) will be paid (if not earlier) via 60 equal monthly payments (that have a 5.5%/year pro-rated interest fee included)
  • Highlands Union Bank charge-off (which is owed $641,781.24) will be paid for a secured loan (if not earlier) via 270 equal monthly payments (that have a 5%/year pro-rated interest fee included). FYI:  270 months equals 22.5 years.
  • Highlands Union Bank (which is owed an additional $38,618.68) will be paid for another secured loan (if not earlier) via 60 equal monthly payments (that has a 5%/year pro-rated interest fee included)
  • Hodges Electric (which is owed $20,128.56) will be paid (if not earlier) via 60 equal monthly payments (that have a 5%/year pro-rated interest fee included)
  • Macquarie Corporation and Asset Funding, Inc. (which is owed $125,000.00) will be paid (if not earlier) via 60 equal monthly payments (that have a 5%/year pro-rated interest fee included)
  • PNC Bank (which is owed $197,500.00) will be paid (if not earlier) via 60 equal monthly payments (that have a 5%/year pro-rated interest fee included)
  • Renasant Bank (which is owed $140,000.00) will be paid (if not earlier) via 60 equal monthly payments (that have a 5%/year pro-rated interest fee included)
It was assumed in the re-organization plan that each of the above debtors would be paid back 100% of their debt.
  • holders of allowed unsecured claims (which are owed $947,233.00 in total) will receive distributions equal to their pro-rata share of the Reorganized Debtor’s net-after-tax-cash-flow for years 2020-2024. Those distributions will be paid in 5 installments, on or before December 31st of years 2021-2025.  (FYI: A "Reorganized Debtor" is an entity that (via a ruling from the Bankruptcy judge) will only have to payout to its various creditors amounts dictated by the approved Re-organization Plan).
It was assumed that the above debtors with unsecured claims would be paid 29% of their debt.
  • Dr. DJ Cecil, Jr. and Appalachian Capital, LLC (which are owed $193,194.29) will be paid once all of the above claims have been fully paid.
  • allowed unsecured claims of D.J. Cecile, Jr., Danny Cecile, Sr., Jennifer Cecile, and Margaret Cecile (which are owed $764,309.73 in total) will be paid once all of the above claims have been fully paid.
It was assumed that the above 2 sets of debtors would not be paid back anything.

  • Another part of the re-organization plan:  in return for a new equity contribution of $35,000.00, Danny Cecile, Sr. will own 37.50% and Dr. D.J. Cecile, Jr. will own 62.50% of the "Re-organized Debtor"...and thus the Ceciles will retain 100% of the equity interests in the Reorganized Debtor. D.J. Cecile, Jr. will continue to be employed by the Reorganized Debtor with a salary of $4,000 per month (subject to annual cost of living increases).

The re-organization plan states that average projected monthly totals (for the following years) for gross revenue, payments to secured creditors, and unsecured distributions (which means payments to entities having unsecured claims)...and the annual unsecured distribution totals for Radford Quarries, Inc.  are projected to  be:                  
                  Gross                Payments to                Unsecured       Annual Unsecured 

                  Revenue        secured creditors     Distributions    Distributions
2020:    $83,991.80        25,814.08                   3,307.06         39,684.76       
2021:    $85,671.63         25,814.08                   3,940.30        47,283.58
2022:    $87,385.07         25,814.08                    4,586.20        55,034.39
2023:    $89,132.77         25,814.08                    5,245.02        62,940/20
2024     $90,915.42         25,814.08                    5,917.02        71,004.14
The total distributions to unsecured creditors for the 5 years is projected to be $275,947.07 (and FYI:  the total amount of those debts totals $947,293.00).

Documents concerning the bankruptcy also show that the gross revenue for Radford Quarries, Inc. in 2019 was actually:
                                    $7,040.17 in July
                                 $45,562.04 in August
                                 $57,356.32 in September
                                 $54,634.17 in October.


The amended Re-organization Plan shows the gross revenue, gross profit, the general & administrative selling costs, and the net income for Radford Quarries, Inc. for each quarter in 2019 was:
                                                                1st qtr.     2nd qtr.   3rd qtr.    4th qtr.
                              gross revenue:  222,262  407,618  103,881  203,018
                                    gross profit:    62,689   287,525    80,822      47,011
general & admin. selling costs:   92,529      88,638    67,199      45,511
                                      net income:  (26,856)  166,576      6,610         7,098
​

The totals for 2019 were: gross revenue:    $1,016,780
                                                            gross profit:      $478,046 
                        general admin. & selling costs:      $293,877
                                                               net income:      $153,428

February 19, 2020:  the Bankruptcy Court Judge accepted the amended re-organization plan, and asked all creditors to reply back with a filled-out ballot (sent to them by the Court) no later than March 26th. On the ballot, they are to vote to either accept this plan or reject it.
 
March 5, 2020:   the N.C. Supreme Court sent out notice that the Ashe County PIDO case will be heard at the Cumberland County Courthouse (in Fayetteville, N.C.) at 9:30 am on Tuesday, May 5th.  That hearing was put off due to the coronavirus.  It has been re-scheduled for September 1, 2020.  Details can be seen at the July 13, 2020 posting on this timeline.

March 13, 2020:   N.C. Supreme Court Chief Justice Cheri Beasley announced that starting on Monday, March 16th, most District and Superior Court cases will be continued for 30 days to prevent the spread of the coronavirus.

March 30, 2020:  the results of the vote of the secured creditors on whether to accept or reject the amended re-organization plan were posted.  Eight voted to accept it and three voted to reject it.

March 31, 2020:  the February financial activity totals for Radford Quarries, Inc. were posted.  The gross revenue was $36,800.65.  The projected average monthly revenue for 2020 in the amended re-organization plan is $83,991.80.

April 3, 2020:  the hearing scheduled for today that would determine whether the amended re-organization plan is confirmed by the Court and thus would go into effect has been continued until June 5th. 

April 3, 2020:   N.C. Supreme Court Chief Justice Cheri Beasley announced that most District and Superior Court cases will be continued until at least June 1st  to prevent the spread of the coronavirus. 

June 5, 2020:  the Bankruptcy Judge met telephonically with legal representatives of Radford Quarries, Inc. and also with legal representatives of those entities with secured claims that rejected the Re-Organization Plan put forth by Radford Quarries, Inc..  Each rejection was brought up and discussed by the legal representatives of both the claimant rejecting the Re-organization Plan and Radford Quarries, Inc.. Solutions to each of the rejections were agreed upon by both sides, plus the Judge.   

July 7, 2020:  Dr. Danny James (DJ) Cecile, Jr. filed for chapter 11 Bankruptcy.  On "Official Form #101: Voluntary Petition for Individuals filing for Bankruptcy," which was filed on July 7, 2020, it shows:
* 
he has up to 49 debtors (and 39 different claims from creditors are listed)
* 
all of his debts are business debts
* 
in answering the question "Any business names and employer identification numbers (EIN) you have used in the last 8 years," he lists "Radford Quarries, Inc," and "Perry Farms, LLC"
* 
he states his assets are worth between $500,000 and $1 million
* 
he states his debts are between $1 million and $10 million.

 July 8, 2020:  On Official Form 309E2 "Notice of Chapter 11 Bankruptcy Case," it is stated that creditors have until September 15th to file a claim.

On "Form 104:  For Individual Chapter Eleven Cases: List of Creditors that Have the 20 Largest Unsecured Claims Against You and Are Not Insiders”:  the twenty claims listed total $3,161.707.38.  Those claims (in alphabetical order) are:
Ally Financial (Bloomington, MN) – $26,792.00
Bamboo Road LLC (Nashville, TN) – $265,000.00
Caterpillar Finance (Nashville, TN) – $151,839.25
Caterpillar Finance (Nashville, TN) – $37,763.40   
Caterpillar Finance (Nashville, TN) – $56,533.26
Caterpillar Finance (Nashville, TN) – $56,439.53
Citizens One Bank (Warwick, RI) – $27,598.00
First Community (Bluefield, VA) – $59,002.39   
First Community (Bluefield, VA) – $117,697.88
First Community f/k/a Highlands Union Bank (Bluefield, VA) – $86,366.82
First Community f/k/a Highlands Union Bank (Bluefield, VA) – $56,330.35
First Community f/k/a Highlands Union Bank (Bluefield, VA) – $37,979.70
First Horizon f/k/a Capital Bank (Memphis, TN) – $167,298.75
First Horizon f/k/a Capital Bank (Memphis, TN) – $136,930.49
Hometrust Bank (Asheville, NC) – $312,450.00
Macquarrie Bank (Nashville, TN) – $200,000.00
PNC Equipment Finance (Horsham, PA) –$ 203,686.00
Watauga Holdings 1 LLC (Winston-Salem, NC) – $742,000.00
Watauga Holdings 1 LLC (Winston-Salem, NC) – $320,000.00 
  
NOTE:  f/k/a stands for "formerly known as"

July 13, 2020:   the N.C. Supreme Court has sent out notice that the petition to review the Court of Appeals ruling on the Polluting Industry Development Ordinance (PIDO) case will be heard in Raleigh on Monday, September 1st.  This will be the first case heard that day (which means it will begin either at 9:30 or 10:00 am)  At this point, the Supreme Court is not sure if those oral arguments will be conducted via WebEx (which is similar to Zoom), or if those oral arguments will be done in-person. 

July 16:  2020:  on June 5th the Bankruptcy Judge met telephonically with legal representatives of Radford Quarries, Inc. and also with legal representatives of those entities with secured claims that rejected the Re-organization Plan put forth by Radford Quarries, Inc..  Each rejection was brought up and discussed by the legal representatives of both the claimant rejecting the Re-organization Plan and Radford Quarries, Inc.. Solutions to each of the rejections were agreed upon by both sides, plus the Judge.   On July 16th  the Bankruptcy Judge confirmed (i.e., approved) the resulting Re-organization Plan.  That plan will go into effect on or before September 14, 2020.

It should be noted that this plan was analyzed by non-lawyers.  It is 32 pages long, and is full of legal terms.  Hopefully everything shown below is accurate…but there is a chance errors may have unintentionally been made.

The following are definitions of terms used by us in our analysis of the confirmed Re-organization Plan:
​
Debtor:  Radford Quarries, Inc.

Effective Date of the Reorganization Plan:  in this case it is the business day that is 60 days from the Confirmation Order date (July 16, 2020).  Sixty days from July 16th is Monday, September 14, 2020.

Insider:  a director or officer of the debtor, and/or a person in control of the debtor, and/or a relative of a partner, director, officer or person in control of the debtor.

Administrative Claim: is an expense claim for debts that arise after the filing for bankruptcy that are related in some way to Radford Quarries, Inc. going through this bankruptcy court process.

Secured Claim: a debt that is guaranteed by some form of property (i.e., collateral).

Unsecured Claim: a debt that does not have collateral attached to it.

Re-organization Plan:  a plan put forth by the debtor that allows for those entities with claims to be paid some portion of their claim.  In Chapter 11 bankruptcy, those with claims have the ability to either accept or reject a re-organization plan.  In this case, the Judge had a hearing on June 5th  with all those entities holding secured claims against Radford Quarries, Inc. that voted to reject the re-organization plan submitted by Radford Quarries, Inc..  A solution was decided upon that all parties, plus the Bankruptcy Judge, agreed to.

Reorganized Debtor:  once a Re-organization Plan has been approved and confirmed by the Bankruptcy Judge, the debtor officially becomes a re-organized debtor.  A Re-organization Plan allows the debtor to reorganize debts without resorting to asset liquidation.

PACER.com:  the platform folks can go to, to find what is happening with any federal court case (and FYI:  all bankruptcy cases are federal court cases).

All claims are prioritized in a Re-organization Plan.  In this Reorganization Plan, all the claims are essentially prioritized thusly:
  1. Administrative Claims
  2. Tax claims
  3. Secured claims of non-insiders
  4. Unsecured claims of non-insiders
  5. Secured claims of insiders
  6. Unsecured claims of insiders
  7. Those with equity interests in the debtor (which in this case are Danny Cecile, Sr. {who owns 37.5% of Radford Quarries, Inc.} and Danny James (DJ) Cecile, Jr. {who owns 62.5% of Radford Quarries, Inc.}).

What this means:  all Priority 1 claims get paid before any Priority 2 claims get paid, and all Priority 2 claims get paid before any Priority 3 claims get paid, etc., etc.

It must also be noted here that Dr. Danny James (DJ) Cecile, Jr. filed for chapter 11 personal bankruptcy on July 7, 2020.  On "Official Form #101: Voluntary Petition for Individuals filing for Bankruptcy," which was filed on July 7, 2020, it shows:
  • he has up to 49 debtors (and 39 different claims from creditors are listed)
  • all of his debts are business debts
  • in answering the question "Any business names and employer identification numbers (EIN) you have used in the last 8 years," he lists "Radford Quarries, Inc," and "Perry Farms, LLC.”

It is not known how that bankruptcy case will affect this bankruptcy case. 

We will go thru the confirmed Reorganization Plan of Radford Quarries, Inc. by priorities:

Priority 1:  Administrative Claims:  should be paid in full by Sept. 14, 2020

Priority 2:  Tax Claims totaling $193,154.29:  shall be paid in five annual cash payments on or before July 15th of each year following July 16, 2020, in an aggregate amount equal to the claim, together with interest.  Thus, these claims should be paid in full by July 15, 2025.

Priority 3:  Secured Claims (in alphabetical order) totaling $2,062,325.29:

***Bamboo Road, LLC secured claim of $266,600.00, less any payments made by the Debtor to Bamboo during this bankruptcy case:  payments shall begin in August, 2020, and shall be made in equal monthly principal payments of $2,500.00 per month until paid in full. Bamboo Road, LLC shall retain its lien on the property until payment has been made in full. (This means it will take at least 8 years and 11 months to make full payment).

***Capital Bank secured claims totaling $186,000.00, less any payments made by the Debtor to Capital Bank during this bankruptcy case:  payments shall begin in August, 2020, and shall be made in equal monthly installments of principal and interest, with interest at 5.0% per annum, over 60 months with no prepayment penalty. Capital Bank shall retain its lien(s) on the property until payment has been made in full.

***Caterpillar Financial Services Corporation  (which will be referred to as CFSC) secured claims totaling $418,179.96,  plus post-bankruptcy filing interest and attorneys’ fees and their expenses (totaling another $23,555.38), less any payments made by the Debtor to CFSC during this bankruptcy case:  the fair market value of Caterpillar’s collateral is valued at $671,500.00.  Payments shall begin in August, 2020, and shall be made in equal monthly installments of principal and interest, with interest at 5.00% per annum, over 60 months with no prepayment penalty. CFSC shall retain its liens on the property until payment has been made in full.

***First Secured Claim of Watauga Holdings I, LLC (acquired from Highlands Union Bank) totaling $647,042.71, less any payments made by the Debtor to Watauga Holdings I, LLC during this bankruptcy case:  payments shall begin in August, 2020, and  shall be made in equal monthly installments of principal and interest amortized over 19 years, with interest at 5.0% per annum and a balloon payment due after eighty-four monthly payments with no prepayment penalty. Watauga Holdings I, LLC shall retain its liens on the property until payment has been made in full.

***Second Secured Claim of Highlands Union Bank of $38,318.68, less any payments made by the Debtor to Highlands Union Bank during this bankruptcy case:  Radford Quarries, Inc. shall pay Highlands Union Bank equal monthly installments of principal and interest, with interest at 5.0% per annum, over 60 months with no prepayment penalty. Highlands Union Bank shall retain its lien(s) with the property until payment has been made in full.

***Hodges Electric secured claim of $20,128.56:  payments shall begin in August, 2020, and shall be made in equal monthly installments of principal and interest, with interest at 5.0% per annum, over 60 months with no prepayment penalty. Hodges Electric shall retain its lien with the property until payment has been made in full.

***Macquarie Corporation and Asset Funding Inc. (which will be referred to as MC&AFI) secured claim of $125,000.00, less any payments made by the Debtor to MC&AFI during this bankruptcy case:  payments shall begin in August, 2020, and shall be made in equal monthly installments of principal and interest, with interest at 5.0% per annum, over 60 months with no prepayment penalty.  MC&AFI shall retain its lien with the property until payment has been made in full.

***PNC Bank secured claim of $197,500.00, less any payments made by the Debtor to PNC Bank during this bankruptcy case:  payments shall begin in August, 2020, and shall be made in equal monthly installments of principal and interest, with interest at 5.0% per annum, over 60 months with no prepayment penalty.  PNC Bank shall retain its lien with the property until payment has been made in full.

***Renasant Bank secured claim of $140,000.00, less any payments made by the Debtor to Renasant Bank during this bankruptcy case:  payments shall begin in August, 2020, and shall be made in equal monthly installments of principal and interest, with interest at 5.0% per annum, over 60 months with no prepayment penalty.  Renasant Bank shall retain its lien with the property until payment has been made in full.

Priority 4:  Unsecured claims of non-insiders totaling $695,035.97 (per Official Form 206E/F filed by Radford Quarries, Inc. on August 23, 2019):  will receive distributions equal to their pro rata share of the Reorganized Debtor’s net-after-tax cash-flow for years 2020-2024. These distributions will be paid in five installments, on or before December 31st of years 2021- 2025, respectively.  In a posting on PACER.com on November 11, 2019, the legal representatives of Radford Quarries, Inc. posted that Projected Total Payments to unsecured claims will total only $275,947.07. 

If the above last sentence proves to be correct, then none of the following will be paid.

Priority 5:  Secured Claims of Insiders totaling $193,154.29 (per Official Form 206E/F filed by Radford Quarries, Inc. on August 23, 2019). These are claims from Danny James (DJ) Cecile, Jr. and Appalachian Capital, LLC.  (Per the N.C. Secretary of State’s website:  Dr. DJ Cecile, Jr. is the registered agent and manager of Appalachian Capital, Inc.).

Priority 6: Unsecured claims of Insiders totaling $764,309.73 (per Official Form 206E/F filed by Radford Quarries, Inc. on August 23, 2019).  These are claims from Danny James (DJ) Cecile, Jr., Danny Cecile, Sr., Jennifer Cecile, and Margaret Cecile.

Priority 7:
Those with equity interests in the debtor (Danny Cecile, Sr. and Danny James (DJ) Cecile, Jr.):   in return for a $35,000.00 equity contribution on the Effective Date, these 2 gentlemen will retain their interests in the Reorganized Debtor.
​
It must be noted that on the February 19, 2020 entry on our timeline, it is shown that the Re-organization Plan’s Projected Average Monthly Revenue for 2020 for Radford Quarries, Inc. is $83,991.80.  It is also stated that the Projected Average Monthly Payment to Secured Debtors (in 2020) is $25,814.08.
 
As of July 19, 2020, the only posted monthly operating statements for Radford Quarries, Inc. for 2020 are for the months of January thru April.  Below are those results.              
                                         
                  Gross Revenue     Disbursements    Monthly Net Financial Results
Jan:             $25,737.44            $64,955.02          $-39,217.58
Feb:            $64,423.58             $37,115.96          $ 27,307.62
March:       $45,953.19             $58,344.16          $-12,390.97
April:           $68,436.00             $49,983.65          $ 18,452.35
TOTALS: $ 204,550.21         $ 335,967.20          $ -5,848.58

The above totals show that Radford Quarries, Inc. only reached 60.88% of the Projected Average Monthly Revenue for the first 4 months of 2020.  The approved Bankruptcy Re-organization Plan states that required payments to creditors are to begin no later than the last day of August.


September 1,  2020: The N.C. Supreme Court case concerning a petition to that court related to an appeal of the issuance of a PIDO (Polluting Industry Development Ordinance) permit was heard today.

September 15,  2020:  The monthly financial operating statements for Radford Quarries, Inc.  for May, June and July have been recently posted.  They are:
                                                                Total                            Monthly
                Gross Revenue       Disbursements    Net Financial Results
May:      $111,0779.67            $48,871.11             $62,208.56
June:         $64,423.58             $37,115.96             $ 27,307.62
July:           $45,953.19             $58,344.16            $-12,390.97

NOTE:  we define "Net Financial Results" as Gross Revenue minus Total Disbursements, and we define Gross Revenue as being the same thing as "customer payments."  (The posted financial data uses the term "customer payments").

It must be noted that on the February 19, 2020 entry on our timeline, it is shown that the Re-Organization Plan’s projected average monthly revenue for 2020 is $83,991.80.   When you add the three months shown above to the results shown directly above the September 1, 2020 entry on our timeline:  the total Gross Revenue for 2020 is $426,004.65.  The Re-organization Plan's projected average monthly revenue for seven months is $587,942.60.  That means the actual sales are only 72.5% of their projected sales. 
The monthly net financial totals for the months of May - July add up to $77,125.21.  When you add that figure to the monthly net results for January - April:  the total net financial results for 2020 is $71,276.63....which means the monthly average net financial results for 2020 is $10,182.38.  The Re-organization Plan's projected average monthly net financial results is $34,281.21.  That means Radford Quarries, Inc. is only achieving 29.7% of their projected net financial results for 2020.
It must also be noted that the confirmed Re-Organization Plan states that payments from Radford Quarries, Inc. to secured creditors need to be made starting in August (which means they have to be made by the last day of August).   
When a staff lawyer at the Bankruptcy Court was asked "does it matter that their financial results so far this year have been so far short of their projections,"  the reply back was "the debtor's plan was confirmed, so the debtor {Radford Quarries, Inc} should make payment according to the terms of the confirmed plan. If the debtor does not make the required payment, creditors can pursue their state court remedies."    


October 5, 2020:  A proposed Re-organization Plan for the Chapter 11 personal bankruptcy case of Danny James (DJ) Cecile, Jr. was posted on October 5th on Pacer.gov (the internet site that keeps track of all legal documents in Federal Court cases).  It is 32 pages long.  A brief summary of this (provided by non-lawyers reading this lengthy legal document) follows.

There are 5 sets of claims (and each set is listed in its priority in being paid…which means the first sets gets paid before the second set of claims, and the second set gets paid before the third sets of claims, etc.).
1st set of claims:  Administrative Claims (amount unknown)
2nd set of claims:  Allowed Priority Non-tax Claims (amount:  zero)
3rd set of claims:  Priority Unsecured Tax Claims (totals $16,943.96).  Has to be paid in-full within 5 years of the Effective Date of an approved Re-organization Plan (and the monthly payments would total $282.38).
​
4th set of claims:  Secured Claims

                         1.  First Community Bank for Deed of Trust to 2994 Champion Mt. Pleasant Rd., Ferguson NC (in the amount of $99,999.56).                                         
                                          *  
monthly payments will commence no later than the first full month after the Effective Date of an approved Re-organization Plan, and shall be in an amount so that the unpaid balance is charged a 4.5% interest rate and the whole debt is repaid no later than 10 years after the Effective Date of an approved Re-organization Plan .
                         2.  First Community Bank for Deed of Trust to 774 Rom Eller Rd., Ferguson NC (in the amount of $56,782.06).
                                           * monthly payments will commence no later than the first full month after the Effective Date of an approved Re-organization Plan, and shall be in an amount so that the unpaid balance is charged a 4.5% interest rate and the whole debt is repaid no later than 10 years after the Effective Date of an approved Re-organization Plan .
                          3. New Horizon (formerly known as Capital Bank) for judgment attached to the Debtor’s interest in the real property on Charlie Hollar Rd. (in the amount of $1,500.00).
                                             *  monthly payments will commence no later than the first full month after the Effective Date of an approved Re-organization Plan, and shall be in an amount so that the unpaid balance is charged a 4.5% interest rate and the whole debt is repaid no later than 10 years after the Effective Date . of an approved Re-organization Plan.
                           4. Ally Servicing, LLC to the title to a 2016 Chevy Suburban (in the amount of $25,269.09).
                                              * 72 monthly payments of $401.12 would be made (and these payments include an interest rate of 4.5%).
                            5.  Home Trust Bank for Deed of Trust to 3133 Draft Road, Butler, TN (in the amount of $312,450.00). 
                                              * payment shall be made in monthly payments commencing with the first full month following the Effective Date of an approved Re-organization Plan, in an aggregate amount equal to such Allowed Secured Claim, together with interest at 3.875%, such that the Allowed Claim will be paid pursuant to contract the first full month after the Effective Date of an approved Re-organization Plan.
                         6.  First Community Bank for Deed of Trust to 2994 Champion Mt. Pleasant Rd., Ferguson NC (in the amount of $86,366.82)
                                             * payment shall be made in monthly payments commencing with the first full month following the Effective Date of an approved Re-organization Plan, in an aggregate amount equal to such Allowed Secured Claim, together with interest at 6.7%, such that the Allowed Claim will be paid pursuant to contract the first full month after the Effective Date of an approved Re-organization Plan.

5th set of claims:  Unsecured Claims (totaling $2,261,467.73).  Thirty-six payments of $1,642.80 will be made….which totals $59,140.80.  This means holders of these debts will receive 2.6 cents for every dollar of debt they are owed.

Via all the forms filed by Danny James (DJ) Cecile, Jr., these show that the combined future disposable income for him and his wife should be $1,642.80/month.  This is where the above figure comes from.

For any Re-organization Plan to be approved in Chapter 11 bankruptcy, the plan must show that the creditors are getting more from the plan than they would if all the assets were sold via a liquidation sale. The analysis in this proposed plan states that if all assets were liquidated, then the unsecured creditors would not be paid anything.  With the plan, they will be getting paid 2.6% of their debts.

All the creditors get a vote in determining whether the proposed plan gets approved.

December 18, 2020:   the N.C Supreme Court ruled that the N.C. Court of Appeals made an error in its ruling in the PIDO (Polluting Industry Development Ordinance) case it ruled on (that ruling being issued on May 22, 2019).  The ruling the NC Court of Appeals made was based on the fact that in a June 22, 2015 letter from Ashe County Planning Director Adam Stumb, he made a non-judgmental statement in that letter stating that the information presented in the asphalt plant  PIDO permit application looked ok (and the preceding is not a quote, but is my summary of that statement).  The NC Court of Appeals wrote in their ruling that this statement was in fact a judgmental statement...and because of that fact:  they ruled that the asphalt plant PIDO permit must be awarded.

The Supreme Court on December 18th ruled that the NC Court of Appeals had erred concerning that statement in Mr. Stumb's letter.  This case has been sent back to the NC Court of Appeals, for them to rule on again (and their new ruling will be based on the fact that the statement in Mr. Stumb's June 22, 2015 letter will not be considered in their new ruling).  Hence, the NC Court of Appeals judges will study the other parts of this case, and will make a new ruling.  The NC Supreme Court ruling can be viewed by clicking here ( * ).


March 22, 2021:  The proposed re-organization plan submitted by Danny James (DJ) Cecile, Jr. was approved by the Bankruptcy judge overseeing this case.  In dealing with the unsecured claims totaling $2,261,467.37 in this case: the re-organization plan states that each creditor will receive $2.60 for every $100 they are owed.  Concerning the several secured claims in this case:  the re-organization plan states that each debtor will be paid in equal monthly payments, so that these claims will be paid in full either in 5 years, or in 10 years (with the plan detailing how soon each claim will be paid).       

April 15, 2021: 
  the N.C Supreme Court's ruling on December 18, 2020 that the Polluting Industry Development Ordinance ruling be re-heard by the NC Court of Appeals will take place today with oral arguments in this case before the NC Court of Appeals starting at 9:30 am.

April 16,  2021:  The Federal  Bankruptcy Court Judge ruled that the Chapter 11 bankruptcy case involving Radford Quarries, Inc. is now closed.   on the July 16, 2020 entry in this timeline you will see the re-organization plan that was approved by the Judge.

August 2, 2022:  ugusWhen Appalachian MAterials, LLC applied for a permit for an asphalt plant, they had to get a Polluting Industries Development Oridnance (PIDO) permit.  That permit stated that a polluting indistry cannot reveived a permit to begin operations if it is located within 1,000 feet of a commerical building. There is a shed that was used to store hay that was lated sold. That building was closer than 1,000 feet from the proposed asphalt plant. The Ashe County Planning Board had ruled that this shed was not a commerical building, and it ordered Ashe County Planning Director to approve the PIDO permit.
However, on August 2, 2022, the NC Court of Appeals ruled that the Planning board was in erre, and this shed was in fact a commercial building. Thus the PIDO permit should not be approved.
Back on Octover 3, 2016, the Ashe County Commissioners repealed the Pollutiing Industry DEvelopment Ordinance and replaced it with the High Impact Land use Ordinance (HILUO).  That ordinance lengthened the 1,000 foot "safe" distance.
Thus, because of HILUO:  an asphalt plant can never be operated in Glendale Springs! 
On Sunday, June 4, 2017, renown Winston-Salem Journal columnist Scott Sexton
(who many refer to as "the conscience of Winston-Salem")
wrote an in-depth front-page article about the proposed asphalt plant. 
To view that article, click here ( * ).
On Sunday, June 11, 2017, the Winston-Salem Journal  expressed their opinion that
there should not be an asphalt plant in Glendale Springs.
To view that editorial, click here ( * ).

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