CLEARWATER - Socrates A. Charos called it a "miracle" and a "resurrection."

The Royalty Theatre, which Charos has owned since 1999, was slated to be auctioned Friday because he owed his lenders more than $1-million. But when word spread about Charos' troubles, people came to his aid.

So, instead of going to the Pinellas County Courthouse and watching people bid on the Cleveland Street building, Charos submitted Chapter 11 bankruptcy papers. That move will buy him some time to either come up with the money he owes or find a suitable buyer.

"We are blessed," Charos said Friday. "Thank God. It was a miracle."

Charos, 60, owes nearly $1.2-million on the historic theater in the heart of downtown Clearwater. Charos' loan on the property has been in default for about a year. A court-ordered payment plan was implemented six months ago, but so far Charos has paid nothing.

James Gassenheimer, an attorney for Charos' lender, a private investment group, could not be reached for comment Friday.

Charos' reprieve arrived in the form of Joel Treuhaft, a lawyer who advised him to file for Chapter 11 bankruptcy protection.

Treuhaft, who has practiced consumer and commercial bankruptcy law in the Tampa Bay area since 1985, filed the financial papers Friday on behalf of Florida Sports Dance Federation of America Inc., Charos' company.

Chapter 11 puts all civil actions, lawsuit or foreclosures "in a deep freeze for a period of time" to allow the business to reorganize Treuhaft said.

"It gives him the opportunity to let one of a couple possibilities to come to fruition," Treuhaft said. "He can find refinancing for the loans or he can sell the property."

Charos said he's opening the theater to the community at 7 p.m. on New Year's Eve for singing and dancing. He said those who attend will help plan the theater's future.

"We will make plans on how we start the new year," Charos said. "The theater has a new beginning and the entire community can help plan what to do with the theater and what we want to do."

Charos said no alcohol beverages will be allowed.

Treuhaft said, for the theater to survive, it must find a way to generate income. Some have suggested showing classical films. But downtown Clearwater might not be the ideal location for generating $3,000 a week, Treuhaft said.

"It's a microcosm of downtown Clearwater and I'm not sure if the community is interested in a vibrant downtown Clearwater," Treuhaft said. "I don't know if the community is so minded. This will be a great test."

This isn't the end of Charos' troubles, however. His Dunedin home is also being foreclosed on, court records show.

Demorris A. Lee can be reached at dalee@sptimes.com or 445-4174.