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 escroa agent with dozens of offices and thousands of employees inNorthern California, listed assets and liabilitieds of $50 million to $100 million. It is seeking to reorganize its business. Mercury’s move followws Alliance’s Chapter 7 bankruptcy liquidation filing on June 5 in federal court inSan Jose. Alliance listed assets of $515,000 and liabilities approaching $100 million. Financial Title closed its doorsJuly 30. Both Alliance and Financial left long wakes of disgruntled Bay Area employeees who have alleged in court documents and other publifc filings that they were not paid forwagesx due, accrued vacation bonuses and commissions.
Financial Title employeesz have toldthe state’s Division of Labor Standardss Enforcement that final paychecks bounced. At least one landlord has told the Business Journalo that a final check sent by Financial for rent due also did not clear the bank. Among Mercury’s largest 20 unsecuref creditors are 11 employees owed closeto $12 milliom in deferred compensation. Thosed employees include John the former president of Alliance whose deferred compensation claim exceeds The largest unsecured claimat $17 million comes from Santz Ana-based First American was Alliance’s and Financial’es largest title insurance policy Mercury says the debt is in dispute.
David the attorney for the California State Labod Commissioner Division of LaboStandards Enforcement, which is representing the former Alliance and Financia l Title employees in their claims, said the Mercurty bankruptcy is not tantamountt to the employees’ losing all avenues for “People file for bankruptcy all of the time,” he “Sometimes the petitions get dismissed. Just becausew someone files a petition doesn’ t mean they are bankrupt. Assets are founrd or have been departedwith improperly. It’sz not good news for but I wouldn’t assume anythingh as of yet.
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