The trustee of the 4RUN3 case is demanding monetary refunds from the Holyoke St. Patrick’s Committee

SPRINGFIELD, MA (WGGB/WSHM) – There are new developments in 4RUN3’s bankruptcy proceedings. As you may recall, the former road racing organization owes money to several charities. Now the focus is on the Holyoke St. Patrick’s Parade Committee, which has received its money, but a court request is being made to turn over the money to be redistributed to those who are still owed the money.

A trustee representing charities owed to the former road race organizer is demanding that the more than $176,000 4RUN3 paid to the Holyoke St. Patrick’s Committee be turned over to disburse the now-shuttered money 4RUN3 owes to charities owes in the region.

A hearing Wednesday sought to freeze the total amount of funds paid to the Holyoke St. Patrick’s Committee, but the judge decided to freeze only a portion of the funds, about $31,000, that 4RUN3 received from a bank loan to pay off its debts The committee ensures that the money can be used to pay the charities if the judge ultimately rules in their favor.

Ahead of Wednesday’s case, text messages in court documents obtained by Western Mass News between former 4RUN3 owner Tim Murphy and committee member Brian Donoghue paint a picture of Murphy’s difficulties paying the committee last spring.

On April 2, Donoghue texted Murphy: “I didn’t sleep much last night. It feels like you stole this money.”

On April 4, Donoghue texted: “I had another 16,000 bills sent to the treasurers this morning. I really need that check.” Murphy replied, “I know I’m trying to get it as quickly as possible.”

Court documents showed that 4RUN3 had to take out a $90,000 loan from Mulligan Funding with an interest rate of nearly 60 percent to help raise the money. A check dated April 26 that was supposed to be paid to the committee was received four days later due to insufficient funds.

On May 1, 4RUN3 received a $30,000 line of credit from New Valley Bank in Springfield. A second check made out to the committee was released.

In a telephone conversation with Joseph Baldiga, the attorney representing the organizations’ owed funds, he said this is just the beginning of what he believes will be a lengthy court battle to recover the money for his clients.

The next hearing in this case is scheduled for November 7th.

Copyright 2024. Western Mass News (WGGB/WSHM). All rights reserved.