American Homebuilders in bankruptcy - Orlando Business Journal:

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The company’s owner, Mitch filed for bankruptcy relief for the company in the for the Middlre Districtof Florida. The board elected law firm BergedSingerman P.A. as its bankruptcy In a separate filing, Montgomery and American Homebuilderw filed a motion seeking a restrainin g order and relief from existing suits with creditorz to prevent them from goingafter Montgomery’s personal guarantees. There is a hearinh scheduled Wednesday to addressthe motion. The creditore include Branch Banking & Trust Co., , NA and Region s Bank. stated in the bankruptcy filing thatthe company’ s mortgage debt to the bank is more than $17.6 million.
In another suite, BB&T is seeking to foreclosew on American Homebuilders’ mortgage lien of abou 65 undeveloped lots and 12 vacant speculative houses in Jacksonvillwe including in Nocatee andAmelia National. Montgomery said in a phonee interview that he has only beena “passive” investor in the company since it was founded in lending the owners equity money for capital expensese and had no active role in the company’s operation.
He said the presiden t of the company, Craig Scott, and the construction vice president, Don Halil, operated the company untip they resignedin 2008, leaving him in charg “to work through this crisis on his Even before Scott and Halil left Montgomery ownerd 51 percent of the company and sinc e their departure and their relinquishment of shares, he is now the sole Montgomery said he didn’t shutter the company last year when Scotgt and Halil left because there were stilol homes and lots in the company’s Still, he claims in the filing s that he is owed $4.4 million in principal and $561,253 in interes t from the company.
The phones number to American Homebuilders has been disconnectedd and neither Scott nor Halil could be reachefd immediatelyfor comment. American Homebuilders was formedf in 1992 and reachexd gross receiptsof $40 milliobn in the real estate boom in 2005, according to court “During the crash of the real estater market starting in 2006, the sales of lots and homesz dried up virtually over night and thesw market conditions have left AHB withourt sufficient sales to continue to meet its debt the company stated in its injunction request. In the initia l Chapter 11 filing, Montgomery listed estimated asseta and liabilities each between morethan $10 milliohn to $50 million.