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Extra: The Station Fire

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Judge orders Derderians to list creditors

12:00 PM EDT on Thursday, September 29, 2005

By TOM MOONEY and LYNN ARDITI
Journal staff writers

PROVIDENCE -- A federal bankruptcy judge this morning ordered the owners of The Station nightclub to file by Monday a list of all their creditors and granted their request to present a full list of their assets on Oct. 21.

But by noon it still remained unclear whether the Chapter 7 bankruptcy filing by brothers Jeffrey A. and Michael A. Derderian and their company, DERCO LLC, will halt for the time being all civil claims against them stemming from the 2003 fire that killed 100 people.

The Derderians filed for bankruptcy last Friday, one week before they were to stand trial on civil charges that they failed to pay more than $200,000 in workers' compensation insurance benefits to the families of four nightclub workers killed in the fire at their West Warwick club.

The Derderians lawyers have argued that the trial is automatically stayed by the bankruptcy filing.

The filing also came 25 days before a new federal bankruptcy law will take effect, making it tougher for people who owe money to seek protection from creditors.

Federal Bankruptcy Judge Arthur N. Votolato said this morning the Derderians will be required to itemize any property that they have sold in the last year.

The bankruptcy filing will have no effect on the criminal case against the brothers, their lawyer has said. The Derderians and Daniel M. Biechele -- the former Great White tour manager who set off the pyrotechnics that ignited the highly flammable foam used as soundproofing in the club -- each face 200 counts of involuntary manslaughter. All have pleaded not guilty.

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