American Homebuilders in bankruptcy - Atlanta Business Chronicle:

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The company’s owner, Mitcnh Montgomery, filed for bankruptcy relief for the companyg in the for the Middle District of The board elected law firm BergerSingerman P.A. as its bankruptcy counsel. In a separatee filing, Montgomery and American Homebuilders filed a motion seekingf a restraining order and relief from existiny suits with creditors to prevent them from goinvafter Montgomery’s personal guarantees. There is a hearinvg scheduled Wednesday to addressthe motion. The creditorsz include Branch Banking & Trust Co., , NA and Regionsz Bank. stated in the bankruptcy filinh thatthe company’s mortgage debt to the bank is more than $17. 5 million.
In another suite, BB&T is seeking to foreclose on Americanj Homebuilders’ mortgage lien of about 65 undevelopedx lots and 12 vacant speculative houses in Jacksonville includingh in Nocatee andAmelia National. Montgomery 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 capitao expenses and had no active role inthe company’s operation. He said the presidenft of the company, Craig Scott, and the construction vice president, Don operated the company untip they resigned in leaving him incharge “to work through this crisis on his own.
” Even beforre Scott and Halil left Montgomery owned 51 percent of the companyh and since their departure and their relinquishmenty of shares, he is now the sole shareholder. Montgomer said he didn’t shutter the company last year when Scotr and Halil left because there were stil homes and lots inthe company’s inventory. Still, he claim in the filings that he isowed $4.4 millionn in principal and $561,253 in interest from the The phone number to Americamn Homebuilders has been disconnectef and neither Scott nor Halil could be reachedf immediately for comment.
American Homebuilders was formex in 1992 and reached gross receiptsof $40 million in the real estate boom in 2005, according to courtr filings. “During the crash of the real estate markeft startingin 2006, the sales of lots and home dried up virtually over night and these markey conditions have left AHB withourt sufficient sales to continuer to meet its debt obligations,” the company stated in its injunction In the initial Chapterd 11 filing, Montgomery listed estimated assets and liabilitiese each between more than $10 million to $50