Whatever happened to ... Developers who folded in the Great Recession?
Friday, February 08, 2013 7:00 AM
James Myers filed for personal bankruptcy after Regency collapsed.
Jon Garnaas also filed for personal bankuptcy after his many development companies failed.
Joel Goodman’s various companies that operated under the Triton names also failed.
Others entered bankrutpcy protection, then left when their cases were dismissed for a variety of reasons.
To date, just the Myers bankruptcy has been completed.
When it was filed in October 2009, James Myers’ $184 million bankruptcy petition was the largest in Iowa history. Myers was leading the Regency home building and development companies when they folded in April 2008.
At the time, Regency was the state’s largest home building company and many people in the construction business speculated that its collapse would lead to a tremendous loss of value to banks and other lenders involved in its projects.
To his credit, Myers worked with banks in attempt to clear titles to some properties and keep their losses to a minimum.
Of the $184 million in potential debts cited in the bankruptcy filing, 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.
The payout came largely from Myers’ personal funds, which at the time of the bankruptcy filing stood at about $300,000.
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