Pratt files bankruptcy

Sisters accountant Arthur C. F. Pratt filed on June 17 to reorganize his debts under the U.S. Bankruptcy Code.

The bankruptcy is in response to a civil suit against Pratt filed by the Estate of Joseph M. Fought on March 29, claiming that Pratt owed the estate more than $2.3 million.

About $1.7 million of that money was used to build an office building at the corner of Hood and Pine streets in Sisters and nearly $600,000 went to purchase a home in Bend.

In a letter to clients mailed on June 11, Pratt said he had the choice of doing nothing in response to the foreclosure, thereby losing his office building and his home, or file for the Chapter 11 debt reorganization.

Pratt said in his letter if he "wins" the bankruptcy, the estate could be forced to take a loss on the debt and continue financing Pratt's obligations, but at a lower amount.

Pratt said he is working with his attorneys on two plans. Under the first, Pratt would pay off his debts in seven years. In the other, the debts would be satisfied in 10 years.

"These plans are based on the present reality (of a slack market for office space) and the long term as demand catches up with supply," Pratt said.

According to clerks at the United State Bankruptcy Court in Portland, Pratt has not filed all the required information, including naming all parties to whom he owes money. These schedules must be filed by July 2, according to the court.

The first hearing on the bankruptcy is scheduled for August 2 at the Comfort Inn in Bend, according to court clerks.

Pratt said that the trial on the bankruptcy would either be held next October or in about one year.