Print
Jan 11, 2005 8:53 am US/Central
E2 Nightclub Owner Files For Bankruptcy
CHICAGO (CBS/AP) ―
The company that owned the former E2 nightclub in Chicago has filed for bankruptcy.
The move by LaMirage Allnight Studio Limited could present a potential roadblock for families of those killed and injured in a deadly stampede at the club.
Bankruptcy papers list the company's assets at zero and liabilities of about 28-thousand dollars. About 40 civil lawsuits have been filed against the company.
Owner Dwain Kyles signed Chapter 7 bankruptcy papers on behalf of LaMirage Allnight Studio Limited on Dec. 30. The filing listed assets of zero and liabilities of about $28,000. The filing did not include potential damages from more than 40 civil lawsuits related to a deadly stampede that killed 21 people.
"He's saying, 'It is out of my hands and it belongs to the bankruptcy trustee,"' said Ernesto Borges, an attorney representing Kyles in the bankruptcy case. "He's got enough on him ... He doesn't have to devote time to liquidating assets."
Kyles and his alleged silent partner, Calvin Hollins, are charged with criminal contempt in housing court case for keeping the club open. They face involuntary manslaughter charges in criminal court.
Twenty-one people died in the February 2003 stampede.
Joel Handler, an attorney who represents one of the people injured in the incident, said the bankruptcy filing should not affect the ability of plaintiffs to sue the city or E2's insurance company.
Kyles, alleged silent partner Calvin Hollins Jr. and the E2 corporate entity are charged with criminal contempt for keeping the club on the city's South Side open on Feb. 17, 2003, when 21 patrons died after a stampede inside the club. The stampede started after someone used pepper spray to break up a dance-floor fight. Patrons fled for the doors, crushing each other on a narrow staircase.
City attorneys insist a Cook County Housing Court judge issued an order to close the entire club on July 19, 2002, but lawyers for the nightclub maintain the judge's order only pertained to the club's skyboxes, located on the mezzanine of the building's second floor. A restaurant was located on the first floor.
The city is seeking more than a year in prison for each of the men in the housing court case. They also face involuntary manslaughter charges in criminal court, along with party promoter Marco Flores and Hollins' son, Calvin Hollins III.
Kyles said he sympathizes with the families and hopes his insurance company will compensate them.
(© 2005 CBS Worldwide Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
