Brian Gates, the owner of Spicer Mansion, the Mystic boutique hotel which is the subject of ongoing foreclosure proceedings, filed for Chapter 11 bankruptcy on Friday, preventing Saturday’s planned foreclosure sales of four more properties he owns, including his residence in Stonington.
Gates’ notice of bankruptcy petition was filed in New London Superior Court by his lawyer, Richard Malafronte. The petition itself, filed in the US Bankruptcy Court for the District of Connecticut, was not immediately available online.
The state court website reported that foreclosure sales scheduled for Saturday, which were all scheduled to take place at noon, have been canceled. The sales were to include public auctions of Gates’ home at 116 Cove Road in Stonington, as well as two Putnam properties, one a commercial building at 18 S. Main St., the other a residence at 118 School St. ., and a strip mall at 32-44 Norwich Road, Plainfield.
The four properties were used to secure a mortgage Chelsea Groton Bank gave Gates for the hotel in 2015. The bank sued Gates for foreclosure in 2019, alleging he was in default.
The hotel was auctioned off in a foreclosure sale in March, with Ross Weingarten, a Gates business associate, submitting a winning bid of $3.52 million. Weingarten subsequently failed to complete the purchase within a court-ordered time frame, risking forfeiture of his $367,000 deposit.
Weingarten challenges the confiscation.