More Developers File For Bankruptcy
by October 20, 2008 12:00 am 70 views
We talk about the legal ramifications of developers suing bankers here with the trial between Tom Terminella and Metropolitan National Bank commencing Oct. 20.
Brandon Barber appeared to take a page out of that playbook when he sued Legacy National Bank and filed an 11th-hour Chapter 11 bankruptcy on Aug. 20 to stop a scheduled foreclosure sale of the Legacy Building on Aug. 21.
Barber only bought himself a couple months as it turns out, with a federal judge tossing out his Chapter 11 filing on Oct. 14 and granting Legacy National Bank’s motion to dismiss.
Two other big-name developers in Northwest Arkansas have just pulled the same move, which won’t do much to ease bankers’ frustrations at once again being forced into litigation to settle liabilities.