Lebanon funeral home company proposes reorganization out of $2.6M bankruptcy
Porterfield Scheid Management Co. is seeking permission from the U.S. Middle District Bankruptcy Court to refinance and begin selling off Lancaster County rental properties to pay off loans and debts on two funeral homes in Lancaster County. A hearing on that proposal is scheduled for Dec. 3.
The company holds real estate for Porterfield-Scheid Funeral Directors & Cremation Service Ltd., 890 Isabel Drive, North Cornwall Township; Melanie B Scheid Funeral Directors & Cremation Services, The Gundel Chapel, 3225 Main St., Conestoga Township; and Melanie B. Scheid Funeral Directors & Cremation Services, 317 E. Orange St., Lancaster city.
The company is seeking to reverse a stay so it can move forward with a sale of the Lebanon County facility to a Berks County funeral home business, Kevin M. Bean Living Trust of Heidelberg Township. A hearing on that matter is set for Nov. 26 in Harrisburg.
The holding company is co-owned by Melanie B. Scheid and James Porterfield, who also operate the funeral homes. Scheid said she filed for Chapter 11 bankruptcy in May because the company needed to reorganize its debts after her partner, Porterfield, became ill.
Scheid said, about the same time that a loan matured in March, Porterfield had open heart surgery. He was not able to return fully to the business.
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'Time to reorganize'
"This gives us time to reorganize," Scheid said in an interview Monday about the bankruptcy. "The whole purpose of it is to come out stronger."
Scheid that the reorganization of the holding company does not affect the operation of the funeral homes or the personalized services she provides.
"This is a small business," Scheid said. "I just try to serve people."
Scheid said her intention is to pay the debts. She and Porterfield did not foresee him getting ill.
"We should have planned accordingly," Scheid said.
Porterfield Scheid owes about $1.4 million on its mortgage for 890 Isabel Drive to Integrity First Capital LLC of York County, according to bankruptcy documents. Bean has agreed to pay $1,675,000 for the property.
Porterfield Scheid owed Community First Fund, now called Finanta, $871,330 for mortgages on its Conestoga and Lancaster city properties, and that debt was transferred to a company called RFM JLM LLC during the bankruptcy. Porterfield Scheid also owes $300,000 to PCDFC Pennsylvania Community Development and Finance Corp. for the city facility, which is located in its historic district.
Porterfield Scheid does not intend to sell the Conestoga and Lancaster properties. Scheid said in an interview that $1 million had been invested in restoring the 9,000-square-foot historic city property at 315-317 E Orange St.
According to bankruptcy documents, Porterfield Scheid wants to borrow up to $1 million plus costs from Loan Ranger LP, 221 E Mifflin St., Lancaster city, with the agreement that collateral assigned to its creditor become collateral for Loan Ranger LP loan. Then Porterfield Scheid would pay up to $1 million to the Community First Fund, now Finanta, as well as back taxes owed on the Conestoga property.
Porterfield Scheid also proposed putting up investment properties up for sale as needed to pay all back and current taxes and reduce debt on Lancaster funeral homes.
County records show Porterfield Scheid owes $23,361 in delinquent property taxes on its Conestoga facility for 2022 and 2023. It owes $33,612 in delinquent property taxes on its city facility for 2022 and 2023.
