Unraveling the 4RUN3 Bankruptcy Saga: A Tangled Web of Charity Debts and Legal Battles

The collapse of the former road race organization, 4RUN3, has left a trail of unpaid debts to several charitable organizations, sparking a complex legal battle to recoup the lost funds. As the trustee representing the charities owed money seeks to recover the over $176,000 paid to the Holyoke St. Patrick's Parade Committee, the case has taken an unexpected turn, with the judge ruling to freeze a portion of the funds to ensure they can be used to pay the charities if the ruling ultimately favors them.

Unraveling the Tangled Web of Charity Debts and Legal Battles

The Struggle to Recoup Funds from the Holyoke St. Patrick's Parade Committee

The trustee representing the charities owed money by the former 4RUN3 organization is now seeking to have the more than $176,000 paid to the Holyoke St. Patrick's Parade Committee handed over. This move is aimed at redistributing the funds to the area charities that are still owed money by the now-defunct road race organizer. The legal battle has intensified, with the judge ruling to freeze a portion of the funds, specifically the $31,000 that 4RUN3 obtained from a bank loan to help pay what they owed the committee. This ensures that the money can be used to pay the charities if the judge ultimately rules in their favor.

Revealing the Behind-the-Scenes Struggles of 4RUN3

Court filings have shed light on the behind-the-scenes struggles of 4RUN3 as they scrambled to make payments to the Holyoke St. Patrick's Parade Committee. Text messages between former 4RUN3 owner Tim Murphy and committee member Brian Donoghue paint a picture of the financial strain the organization was facing. In one exchange, Donoghue expressed his concern, stating, "I didn't sleep a whole lot last night. Feels like you stole this money." Murphy's responses indicate the challenges he faced in trying to secure the necessary funds, with one message reading, "I know I'm trying to get it as quickly as possible."

The Desperate Measures Taken by 4RUN3

The court filings reveal that 4RUN3 had to resort to desperate measures to come up with the cash owed to the Holyoke St. Patrick's Parade Committee. The organization obtained a $90,000 loan from Mulligan Funding, with a nearly 60 percent interest rate, to help make the payment. However, the check dated for April 26 to be paid to the committee bounced four days later due to insufficient funds. It wasn't until 4RUN3 received a $30,000 line of credit from New Valley Bank in Springfield that a second check to the committee was able to clear.

The Ongoing Legal Battle and Its Implications

According to Joseph Baldiga, the attorney representing the organizations owed money by 4RUN3, this is just the beginning of what he believes will be a lengthy court battle to win back the funds for his clients. The next hearing for the case is scheduled for November 7, and the outcome will have significant implications for the charities still awaiting their rightful payments. As the legal proceedings unfold, the focus remains on ensuring that the money owed to these charitable organizations is ultimately recovered and redistributed to those who were left in the lurch by the collapse of 4RUN3.