The collapse five years ago of the Regency development companies is a story that won't go away.
Robin Myers, wife of former Regency principal James Myers, filed for bankruptcy Thursday, citing more than $1 million in business debts, the majority from a state court judgment that ordered the payment of a construction bond for former Regency projects.
She had been scheduled to appear at a hearing today in Polk County District Court in connection with a court-ordered judgment against Regency-related principals, their spouses and business entities in connection with a construction bond for former company projects.
Developers Surety & Indemnity Co., of Irvine, Calif., went to court in March 2010 seeking payment of the bond. It named as defendants Robin and James Myers, Regency Homes co-founder Richard Moffitt, former chief financial officer James Gamble and his wife, Regency Homes LC, Michael's Landing LLC, Regency Land Development Services LC, Stone Prairie LLC and Williams Pointe Development II LC.
A $693,128 judgment was entered in October 2010, more than two years after the Regency companies were shuttered as a result of the collapse of real estate markets and the drying up of credit.
The bonding company apparently believes that Robin Myers is the last of the Regency principals or entities, with assets to pay the judgment.
"It was a creditor that we couldn't come to terms with; Robin had signed off on the bond for the project," said Steve Wandro, who represented Myers in the state court case and filed the bankruptcy petition. "We had hoped we had put all of this behind us and moved on."
According to state court records, Moffitt's responsibility for any portion of the judgment has been released. He was among the trio of Regency principals who had filed for protection from creditors in bankruptcy court.
In 2009, James Myers filed what was believed to be the largest bankruptcy filing in state history, claiming nearly $183 million in debts. The case was terminated in October 2012. Lenders and others initially sought $10.6 million. The trustee in the case determined that $6.2 million of the claims were legitimate. Myers paid $399,737 - slightly more than 6 cents on the dollar - on that figure. Myers continues in the land development business.
The payout came largely from Myers' personal funds, which at the time of the bankruptcy filing stood at about $300,000.
By 2011, Gamble and Moffitt had filed for bankruptcy. All of Gamble's debts were discharged. Moffitt's case remains open.
According to Robin Myers' bankruptcy filing, she has $1.2 million in debts and $564,998 in assets. She is an owner of Planet Sub restaurants, where, according to court documents, she has earned $11,918 since 2011. Unsecured debts include $213,266 in personal guarantees of loans to Small World Investors LLC, which operates Planet Sub.
Assets consist of the family's Waukee residence and a time share in a Hawaii condominium. Developers Surety & Indemnity has a lien on the residence.
Regency also came back into the news over the Labor Day weekend, when a former construction debris recycling business burned to the ground. It is owned by an entity that was formed to secure a loan in a last-ditch effort to save the development company. Read more