A New Windsor horse farm that has been trying to sell the property has filed for bankruptcy for the third time in nearly seven years.
Ivy Rock Farms petitioned for Chapter 12 protection, a bankruptcy code that is tailored to financially distressed family farms and commercial fishermen, Feb. 28 in U.S. Bankruptcy Court, Poughkeepsie.
Ivy Rock Farms is owned by Shelley Gray. The farm includes stables and other equestrian facilities. It offers boarding, horsemanship lessons, clubs, and camps,
Gray originally filed for Chapter 12 protection in 2018. But U.S. bankruptcy trustee Christian H. Dribusch argued that Ivy Rock did not qualify as a family farm. There were no crops, and the camps and lessons and boarding made it primarily a service-oriented business. Judge Cecelia G. Morris dismissed the case in 2021.
Gray petitioned for Chapter 12 protection again in 2022, and in that case Judge Kyu Young Paek approved Ivy Rock’s bankruptcy plan.
As of April 2024, Ivy Rock had a deal to sell the property for $1.6 million, but when the final accounting was filed on Oct. 31, 2024, no sale was mentioned.
The final report lists $2.6 million in claims, for which Ivy Rock paid $63,221, or about 2.4%.
As of Feb. 27, according to the Zillow online real estate marketplace, there is a pending sale for $1.39 million.
The third Chapter 12 petition lists the same creditors as in 2022, but with slightly lower claims, totaling about $2.5 million.
The debts include $1.6 million for two mortgages; $622,349 to two banks; $156,586 for Orange County property taxes; $89,427 to the Internal Revenue Service; and $22,130 to New York State.
Ivy Rock Farms is represented by Wappingers Falls attorney Andrea B. Malin.
