Charo files for bankruptcy

The Eastside nonprofit has been a longstanding and politically influential organization focused on job training and minority business development. CEO Cynthia Amador says the Chapter 11 reorganization would not affect Charo’s community or small business services. EGPNews reports that the bankruptcy filing was necessitated after a lender filed a foreclosure notice on Charo's primary property (h/t to The Eastsider). Had Charo not filed for bankruptcy, Amador said, the properties would have been sold for a “drastically reduced priced.”

Public records show that CHARO owes property taxes of $148,561 on its warehouse property and $64,011 on its commercial primary property, both located at 4301 E. Valley Blvd in Los Angeles. The two properties have been in default since 2005. Only one payment of $6,455 on a single property has been paid in that time. As a public organization, CHARO is entitled to a welfare exemption status for its primary property. The exemption requires the minimum bid at a public auction be at least 50 percent of the property value. The Los Angeles County Assessor’s Office placed this 50 percent value at slightly higher than $3.9 million. Amador said there is enough equity in the two properties to pay off all of CHARO’s debts, including the defaulted property taxes.

BTW, Cynthia is the daughter of Charo founder Richard Amador.