Business Journal: Developer Reynen Filles For Chapter 11
A local housing developer has filed for Chapter 11 bankruptcy reorganization.
Monday, June 2, 2008
John Reynen, a partner of Sacramento’s Reynen & Bardis Communities, racked up $972 million in debt as his company rode the housing wave from boom to bust. That number represents more liability than what’s owed by the city of Vallejo, which filed for bankruptcy protection last week. Reynen filed in April for bankruptcy reorganization. He said the move would block an immediate threat of foreclosure of property that was pledged as collateral. The amount of debt comes from documents filed with the court May 23. Less clear is the amount of the company’s assets. Reynen listed $73 million in real estate and personal property, and he also has stakes in numerous other corporations and new-home projects. About $800 million is owned to two dozen banks and lenders. Some creditors are confident in the developer’s ability to restructure.