Blue Bear bankruptcy swirls on

WINDSOR - Blue Bear Funding LLC might have more to deal with than simply a bankruptcy, reorganization and asset litigation.

David Karst, part owner and former manager of Blue Bear, has broken his silence regarding the bankrupt factoring company. In a state given to the Business Report, Karst not only denies the claims made by Blue Bear and its lawyers claims that hoist some blame upon Karst for the firm's financial difficulties - but Karst also threatens to retaliate with his own lawsuits.

"As a result of Blue Bear officers and attorneys having made misleading, unfounded and false public accusations regarding my role at creditor meetings, public statements and in bankruptcy filings, it is anticipated that (forthcoming) claims will include libel, slander and defamation of character," Karst wrote in an e-mail.

To date, Karst has kept quiet about the nine-month-old bankruptcy case. The case has gained notoriety from its size - Blue Bear creditors and investors have made $20 million in claims against the Windsorbased company - and character - the investors range from prominent local businesspeople to churches and retirees.