Iowa State research park faces big loss in firm's bankruptcy

AMES, Iowa (AP) — The Iowa State University Research Park is facing a major financial loss after a once-promising tenant was allowed to fall behind on rent for years before going bankrupt.

The Ames research park, a nonprofit that is connected to the university, says it is likely the single biggest creditor of Etrema Products and is owed roughly $480,000 in uncollected rent.

The trustee appointed by the government wrote in a court filing last week that the research park's lien on Etrema's property in its lease agreement "is avoidable" under the law and was "never perfected."

The trustee is therefore seeking to sell the company's property assets for $280,000 for the benefit of the entire estate, rather than letting it go only to the research park.