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Christianity Today, August, 2008 |

Cornerstone Falters

Real estate investments bankrupt Presbyterian-affiliated group.

Ken Walker | posted 7/10/2008 09:27AM

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Whether payments will resume to the unsecured creditors hasn't been determined. In a February 20 letter to creditors, Ottinger said the filing would give it an opportunity to correct the "imbalance." A judge has given CMI until September 8 to file a reorganization plan.

Deming, 59, who was downsized from an executive position two years ago, said he and his wife are in better shape than older retirees they observed at a March creditors' meeting.

"We heard some real tough stories from people who had invested," he said. "For some people, it's been a catastrophe."

Related Elsewhere:

Cornerstone's website has a phone number and links to more information on its Chapter 11 bankruptcy reorganization.

Other articles on money and business are in our full-coverage section.

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August 2008, Vol. 52, No. 8

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Displaying 1 - 3 of 7 comments.

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Nathan

Posted: July 15, 2008 2:32 PM


Yes, halflight, except how does a fund investing in church buildings go broke due to commercial real estate failures? And this isn't the first time for these same people the story goes.

wesh	Posted: July 14, 2008 6:18 PM

"the great majority of its loans were risky second mortgages, one reason it was able to charge up to 10.5 percent on new loans." There are no solid real estate investments that provide 10.5% cash returns on an ongoing basis. If is sounds to good to be true, there is a 98% probability it is a lie. This stuff is geared to suckers, the poor, the elderly, and the uneducated, etc. The idea of getting something for nothing [perhaps this is greed or just delusion] is common place today. In finances, it is the tortise that wins.

halflight

Posted: July 10, 2008 6:09 PM


It's natural for investors who have lost money, like the Demings, to feel somehow cheated. However, a publication like Christianity Today should be careful before it repeats allegations of wrongdoing in a financial failure. If there have been no SEC or state securities regulation enforcement actions against Cornerstone management, that should be stated along with the Demings comments.

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