For a second time, the owner of Crossroad Station, one of the two gas stations in Sunriver, forestalled a Sheriff’s sale by filing for bankruptcy protection.

David Howland, owner of the convenience store, car wash and gas station at 56896 Venture Lane, on Monday sought protection from his creditors again, after an agreement to sell the business to American Energy, a Bend company that supplied Crossroad with fuel, fell through.

Howland and American Energy disagreed over who would pay what share of taxes associated with the sale, Howland said Tuesday. A call to Lane Colvin, president of American Energy, was not returned Tuesday.

Howland’s first Chapter 11 bankruptcy petition was dismissed in November after Howland and Bank of the Cascades, the primary creditor, agreed to sell the property and pay some of Crossroad’s outstanding loans, according to bankruptcy filings. Howland in December owed more than $3.4 million, with interest accruing at $1,335 per day, according to the sale order the bank obtained in Deschutes County Circuit Court.

Bank of the Cascades intended to bid $1.4 million for the property Tuesday at a 10 a.m. Sheriff’s sale, according to the Deschutes County Sheriff’s Office, which postponed the sale.

“I never asked the bank to reduce the obligation by anything,” Howland said. “I just wanted some time.”

He said he plans to pay the debt. His Chapter 11 filing states Crossroad Station owes Bank of the Cascades $3.2 million on original loans totaling $2.8 million in 2008.

Howland’s Crossroad partner, Jay Audia, a Bend developer, died in July 2008.

“Now there was only one of me,” said Howland, an accountant. “I’m only a 25 percent owner, carrying 100 percent of the load, using personal funds to make sure the loan was paid.”

Howland, on behalf of Crossroad, first sought bankruptcy protection in June 2013 as a Sheriff’s sale drew near, according to filings in that case. Howland fell short when a Bank of the Cascades loan matured in August 2012.

About a year later, the U.S. Trustee asked the court to dismiss the Chapter 11 case or convert it to Chapter 7 and liquidate the assets, citing unauthorized borrowing and payments made after the bankruptcy filing and failure to file complete and accurate documents, according to court records.

Craig Russillo, a Portland attorney representing the bank, stated Howland had also paid vendors without court approval, according to a document in support of the dismissal.

“This is an unfortunate situation for everyone,” Russillo said Tuesday. “I think the bank was willing to work with Mr. Howland, but they were too far apart on what they wanted.”

Howland said he had to dip into Crossroad accounts after the filing to keep the station supply of gasoline flowing.

— Reporter: 541-617-7815,

jditzler@bendbulletin.com

Editor’s note: This story has been corrected. In the original version, the number of gas stations in Sunriver was incorrect.

The Bulletin regrets the error.