Bankruptcy Expert Named to Port Board

In an effort to bring in bankruptcy expertise, the City Council appointed local businessman Sandford T. Waddell to serve as one of five commissioners for the Ventura Port District.

Waddell, a four-year resident of Ventura, will replace Commissioner Todd Collart, a former Ventura city councilman.

The council also voted 6 to 1 Monday night to reappoint Port Commissioner Gary Jacobs for a second four-year term. Only Mayor Jack Tingstrom opposed him, saying the port commission already has too many lawyers.

Both appointments are seen as critical, since the port district is in the midst of Chapter 9 bankruptcy proceedings. U.S. Bankruptcy Court Judge Robin Riblet will begin hearings July 10 to determine whether the port’s plan for paying off its $22-million debt is satisfactory.

The port district, an independent government agency that operates Ventura Harbor, declared bankruptcy four years ago and has not paid any of its debts since.

If an acceptable plan cannot be developed, the port district could lose its bankruptcy protection and creditors could begin seizing assets.

Councilman Ray Di Guilio, one of two city liaisons to the port district, as well as one of three council members on the Ventura Port District Appointment Committee, expressed optimism that Waddell’s background could help the financially ailing port get back on its feet.

“Sandy is a proven problem-solver with an extensive financial background,” Di Guilio said. He also praised Waddell’s background in real estate and leasing.

Tingstrom, the city’s second liaison to the port district, agreed that Waddell’s background in bankruptcy will be a valuable asset.

Waddell currently serves as the interim CEO of Reddi Brake Supply Corp., the Ventura-based national auto parts distributor currently embroiled in a Chapter 11 bankruptcy.

As a government agency, the port district is a Chapter 9 bankruptcy, but Waddell said he thinks there will be significant similarities between the two types of bankruptcy.

In his background letter to the city, Waddell said that his corporate experience includes a number roles of helping bankrupt companies, including responsibility for the sale of assets and operating businesses during restructuring.