North Bay Business Journal

Banking column: Officials say banks likely to take losses on $19.2 million in Carinalli loans

Banks will likely end up taking losses on a large portion or all of the $19.2 million in unsecured and under-secured loans made to long-time Sonoma County real estate investor Clem Carinalli.

Nine of the 14 financial institutions named in the recent U.S. Bankruptcy Court filings have unsecured loans and three are headquartered locally.

Editorial: For Carinalli bankruptcy, caution, time paramount

U.S. Bankruptcy Court Judge Alan Jaroslovsky has a long history of ably handling major local cases such as the collapse of Health Plan of the Redwoods early this decade and others.

But the Chapter 11 reorganization filing by North Bay real estate investor and businessman Clem Carinalli presents a particular challenge because of the potentially far-reaching impact of the case on the community at-large.

In fact, this case is as much about Santa Rosa as it is about Mr. Carinalli.