Worcester Business Journal

wbjournal.com | March 23, 2026 | Worcester Business Journal 9 arrangements. Because these issues are now before the bankruptcy court, Mr. Norton will respond in full through the court process rather than litigating the case in the press." is case appears to be much more complex than a typical Chapter 7 bank- ruptcy, said James O'Connor, partner at Worcester law firm Seder & Chandler, who is not involved in Norton's case. "ey typically have a meeting of creditors, and 60 days later, the discharge enters, and a few weeks aer that, the case is over," O'Connor said. If a debtor like Norton has his dis- charge denied by the courts, creditors could follow up with lawsuits in an attempt to claw back what they're owed, O'Connor said. Creditors to scrutinize Norton's conduct One reason the case is taking longer than typical is requests by creditors to hold what is known as a Rule 2004 examination. is is a tool used by creditors to compel a debtor to produce documents and explain their conduct. "A 2004 examination is more or less a deposition," O'Connor said. "You bring in a witness and can ask them questions, and you can require that records be produced." A Rule 2004 examination of Norton is scheduled for April 6, according to court records. e related court deci- sion orders Norton to produce financial documents for examination, including bank records and tax returns. X-Caliber Rural Capital traces its roots back to 1991, when it was founded as e Phares Co., according to its website. e firm is a licensed U.S. Department of Agriculture lender, offering loans from $250,000 to $100 million and focused on businesses in rural communities. An answer to X-Caliber's complaint is due by April 1, as Norton's bankrupt- cy case continues to play out in court. Other creditors have filed for time extensions in order to examine finan- cial documents to investigate whether additional grounds exist for rejecting the discharge of Norton's debt, court records show. "Debtor's personal financial state- ments provided to Savers prior to the filing of the Chapter 7 petition are substantially different than the value attributed by Debtor to certain assets disclosed on the Chapter 7 petition," a Feb. 24 filing from the counsel for Southbridge-based Savers Bank reads. "Savers anticipates that the information obtained by the Trustee will either clari- fy the discrepancies or provide the basis for non-dischargeability of the debts owed or guaranteed to Savers." While Norton remains the sole man- ager of Southbridge Associates LLC, the Worcester-based properties Norton was once the face of have largely moved on without him, with other investors taking the lead at sites including Mercantile Center and the Worcester Business Center. Mercantile Center is now man- aged by Eastport Real Estate Services of Wakefield. Creditors' claims against Chip Norton In his bankruptcy filing, six creditors have claimed Chip Norton owes them a combined $75.99 million. Creditor Amount Details Country Bank for Savings, $67,004,509 Money loaned and guaranteed by Norton Ware for obligations relating to Mercantile Center Webster Five Cents $6,708,614 Guaranty of obligations for SBC Energy, Savings Bank, Auburn Norton's firm providing electricity to Southbridge Innovation Center Cornerstone Bank, $1,631,369 Money loaned and guaranteed by Norton Worcester for obligations relating to Franklin Realty Advisors The Smarter Merchant, $196,472 Alleged breach of contract with firm New York providing merchant cash advances Mercantile Capital, LLC, $360,000 Guaranty related to Mercantile Center Worcester Patricia Castillo, $89,100 Unpaid apartment rent Marlborough Total $75,990,065 Source: U.S. Bankruptcy Court for the District of Massachusetts W REAL ESTATE INSIDER

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