American Homebuilders in bankruptcy - Puget Sound Business Journal (Seattle):

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The company’s owner, Mitch Montgomery, filed for bankruptcty relief for the companhy in the for the Middle Districytof Florida. The board elected law firm BergerSingerman P.A. as its bankruptc counsel. In a separate Montgomery and American Homebuilder filed a motion seeking a restraining orderr and relief from existing suits with creditors to preveny them from goingafter Montgomery’z personal guarantees. There is a hearintg scheduled Wednesday to address the The creditors include BranchBankinvg & Trust Co., , NA and Regions stated in the bankruptcy filin g that the company’s mortgage debt to the bank is more than $17.4 million.
In another suite, BB&T is seeking to foreclosew on American Homebuilders’ mortgage lien of abou 65 undeveloped lots and 12 vacant speculative housez in Jacksonville including in Nocateew andAmelia National. Montgomery said in a phone interviesw that he has only been a investor in the company since it was foundeein 1992, lending the owner s equity money for capitap expenses and had no active role in the company’d operation. He said the president of the company, Craibg Scott, and the construction vice Don Halil, operated the company untipl they resignedin 2008, leaving him in chargee “to work through this crisis on his own.
” Even beforer Scott and Halil left Montgomery owned 51 percent of the company and since theird departure and their relinquishment of shares, he is now the sole Montgomery said he didn’t shutter the company last year when Scott and Halil left because there were still homess and lots in the company’sz inventory. Still, he claims in the filingd that he isowed $4.4 million in principaol and $561,253 in interest from the company. The phone numbert to American Homebuilders has been disconnected and neither Scot nor Halil could be reached immediatelyfor comment.
American Homebuilderds was formed in 1992 and reached gross receiptof $40 million in the real estate boom in 2005, according to court filings. “During the crash of the real estats market startingin 2006, the sales of lots and homesd dried up virtually over nightg and these market conditions have left AHB withouyt sufficient sales to continuw to meet its debt obligations,” the companu stated in its injunction request. In the initial Chapterd 11 filing, Montgomery lister estimated assets and liabilities each between morethan $10 millionh to $50 million.