A developer of a luxury subdivision in Hermitage has filed for bankruptcy protection.
Hermitage Developers Inc. filed its voluntary Chapter 11 petition in federal court Friday, claiming $3.9 million in debt with $5.7 million in assets. Much of the latter consists of undeveloped lots as well as finished homes in the high-end Aaron's Cress subdivision.
Most of the homes listed as assets are in the $400,000 to $600,000 range. All together, the company claimed ownership of 19 developed and 27 undeveloped tracts.
The company's largest creditor is Wilson Bank & Trust, holder of $2.3 million lien for an Aaron's Cress lot.
Dwight Holland, president of Hermitage Developers, also signed a bankruptcy petition for HGroup LLC Friday, claiming $2 million in debts against $5.6 million in assets for that firm.
Hermitage Developers' business license has been inactive since 2009; HGroup's was revoked the same year.
Hermitage previously filed for Chapter 11 reorganization in June 2008. Proceedings in that case dragged on for years. Finally, after Assistant U.S. Trustee Beth Roberts Derrick told the court last month that Hermitage "does not appear to be making any progress toward reorganization," the case was dismissed Friday, ahead of the new filing, which may serve to stave off planned The new filings may serve to stave off planned foreclosures by Wilson Bank & Trust, set for Tuesday.
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