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06/12/2007French Manor 'not in foreclosure'TRAVERSE CITY — Trish Gilroy wants to set the record straight. "I want people to know that I am not in foreclosure,” she said. "We provide quality services here and I am not going out of business.” The owner of Traverse City's French Manor Inn was in U.S. Bankruptcy Court Friday after a local attorney served eviction notices to all 26 residents at the assisted-living home. Norm Droste, lawyer for Irwin Union Bank, served the notices last week in an attempt to recover the property as part of an ongoing civil lawsuit against Gilroy and her two companies French Manor, LTD, and French Manor Inn, Inc., according to Gilroy and court records. "Droste filed a motion in circuit court that gave him the authority, so he thought, to evict all my residents,” Gilroy said. "One resident I have is 97 and she was in tears. She doesn't have any family, period. If I wouldn't have went to my legal counsel and had them file for a ... hearing, I would be out of business.” Last June, the Traverse City woman filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court. Because Gilroy and her companies were protected by an automatic stay, or "the tool used to prevent creditors from collecting their debts,” a federal judge deemed the eviction notices invalid at Friday's hearing, said Gilroy's attorney Patrick Fragel. "It was unenforceable and never had the power of law to order anyone to vacate the premises,” Fragel said. "There is absolutely no risk at this point that the residents need to move anywhere. The French Manor is a thriving facility and is fully authorized within the laws of the state of Michigan.” Droste refused to discuss the eviction notices. "Any discussion of her legal or financial matters is not helpful to anyone,” he said. Gilroy said she spoke personally with each resident and their families to assure them French Manor will remain open. "I went around to each room and spoke with each resident. The following day I called every family member,” Gilroy said. "That was really hard to do. One family was even here when the detective and Mr. Droste came through with their whirlwind of papers.” Gilroy has operated the 29-bed facility on Seventh Street for the past 12 years, and said she has received numerous calls about the eviction notices. Some of her competitors even stopped by to leave their business cards, she said. "It is so upsetting, not only to myself and my staff, but all the residents that live here,” she said. "They are the real victims here.”
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