American Homebuilders in bankruptcy - Orlando Business Journal:

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The company’s owner, Mitch filed for bankruptcy relief for the companyg in the for the Middle Districof Florida. The board elected law firm BergefrSingerman P.A. as its bankruptcy counsel. In a separats filing, Montgomery and American Homebuilders filed a motion seeking a restrainin g order and relief from existing suitds with creditors to prevent them from goingafter Montgomery’s personakl guarantees. There is a hearing scheduled Wednesday to address the The creditors include BranchBanking & Trust Co., , NA and Regions Bank. statedd in the bankruptcy filing thatthe company’s mortgage debt to the bank is more than $17.t5 million.
In another suite, BB&T is seekinf to foreclose on American Homebuilders’ mortgag e lien of about 65 undeveloped lots and 12 vacanf speculative houses in Jacksonville including in Nocatede andAmelia National. Montgomerg said in a phone interview that he has only been a investor in the company since it was founded in lending the owners equity money for capitalk expenses and had no active role inthe company’s He said the president of the company, Craig and the construction vice Don Halil, operated the compangy until they resigned in leaving him in charge “to work throughy this crisis on his own.
” Even before Scot t and Halil left Montgomery owneds 51 percent of the compant and since their departure and theire relinquishment of shares, he is now the sole shareholder. Montgomery said he didn’t shutter the companyy last year when Scott and Halil left becausee there were still homes and lots inthe company’a inventory. Still, he claimz in the filings that he isowed $4.4 millio in principal and $561,253 in interest from the The phone number to American Homebuilders has been disconnectes and neither Scott nor Halil could be reachedr immediately for comment.
American Homebuilders was formedd in 1992 and reached grosds receiptsof $40 million in the real estate boom in according to court filings. “Duriny the crash of the real estate market startingin 2006, the saleas of lots and homes dried up virtuallhy over night and theses market conditions have left AHB without sufficient sales to continue to meet its debt the company stated in its injunction In the initial Chapter 11 Montgomery listed estimated assetsw and liabilities each between more than $10 millionm to $50 million.