Alabama Bond Producer Forced to Liquidate

July 16, 2009

An Alabama bankruptcy judge has ordered a Lillian man to sell assets to repay debts to nearly 100 creditors across the country.

Morris C. Sears, 63, had run ABBA Bonding from his home since 2001 despite being told twice by the state Insurance Department to stop the construction bond business.

Sears had initially sought Chapter 11 bankruptcy protection against what he says aren't legitimate claims.

U.S. Bankruptcy Judge Margaret Mahoney granted a creditor's request to switch the case to Chapter 7, which forces asset liquidation.

Sears sold bonds that are used in the construction industry to ensure a project's completion.

Creditors he listed in court filings included the Internal Revenue Service and the city of Mobile. He estimated his liabilities at between $1 million and $10 million.