September 10 looms as a critical date in an ongoing bankruptcy case involving a waterfront property in Dorchester’s Port Norfolk neighborhood that is set for re-development but has been bogged down in a legal quagmire for more than a year now.

A motion to dismiss the case – which would move it from a Chapter 11 rebuilding process to Chapter 7 liquidation – will go before Judge Janet Bostwick, who could force a sale of the parcels on Ericsson and distribute proceeds to a hierarchy of creditors.

The site in question – 24 Ericsson St. – has won city approval to be re-developed into multiple residential buildings with 120 units of housing, a marina and open space amenities next to Venezia restaurant. But, the project has not received other needed environmental permits and has since become mired in financing problems, leading to the bankruptcy case.

The property owner – CPC Ericsson, or City Point Capital headed up by Ryan Sillery – filed for bankruptcy in May to stave off an imminent public auction. Since then, the court has rejected their attempts at two short-term borrowings at high interest, including from Boston Trust and Wallace Capital. According to court filings, CPC Ericsson has no assets aside from the sale of the property.
On Aug. 12, Region 1 US Trustee William Harrington submitted a motion to dismiss noting CPC Ericsson had not submitted a monthly operating report in June and did not pay overdue real estate taxes to the City of Boston.

“More than three months into this case, the debtor has not shown it is able to clear the first hurdle, let alone the second seemingly more daunting task,” read Harrington’s motion. “The Debtor has no employees or revenue. The Debtor has not filed affidavits or other evidence with the Court demonstrating it can satisfy the requirements for nonconsensual priming or that doing so would put the Debtor in a position to complete the second stage - additional financing sufficient to pay debts, commence construction, and emerge from chapter 11. Accordingly, cause exists to dismiss the case or convert it to chapter 7.”

An attorney for CPC Ericsson said they do not accept the motion and believe they can emerge from the Chapter 11 process if given time.

“We plan to defend the motion,” the attorney told The Reporter.