Bankruptcy could sever waterfront pipeline

Sometimes difficult tasks come with needed rewards.

Viper Ventures LLC might realize that truism in a bankruptcy case regarding 31 acres of waterfront real estate it owns near Tampa's Westshore Yacht Club.

Viper wants more time to either sell the land, or find a new tenant to replace ship and yacht repair company RiverHawk Marine LLC, which owes the landowner more than $1.5 million.
But Viper also hopes to get rid of a pesky pipeline that stretches across a portion of the property used to transport hazardous chemicals from boats.

When it purchased the property in 2004 and 2005, Viper inherited the pipeline, which is controlled by Ghandy View Realty Inc. Ghandy, in turn, sublets that pipe to Chemical Formulators Inc., a swimming pool equipment and supply company that manufactures chlorine nearby.

The problem with the agreement, Viper says in its bankruptcy paperwork, is that there is no way to end it. There's no expiration date, and Ghandy would have to default before Viper can take any action.

The pipe has made it impossible for Viper to consider any residential development on the site, or to sell the land to developers looking to do residential. Viper -- a partnership led by entrepreneurs Robert Curtis and William Curtis, as well as one-time builder Charles “Bing” Kearney -- filed a lawsuit against Ghandy in 2011 trying to get out of the pipe agreement. That agreement has been in place since 1996.

No trial is scheduled in that case, despite a judge refusing Ghandy's request to dismiss the case.

Viper now thinks federal bankruptcy codes might void the contract.

That's because a bankruptcy provision gives a debtor like Viper the right to assume or reject “any executory contract or unexpired lease” with court approval. The contract for the pipeline, Viper says, is an executory contract.

An attorney who represents Viper didn't return a call seeking comment on the case. But Viper's contention remains clear: Getting rid of the pipeline could make the land more valuable, and that would get the company out of bankruptcy court even faster.