As liens from suppliers and subcontractors continue to pile up in Washoe County against homebuilder Reynen & Bardis Communities, one of the company's founders declared personal bankruptcy to protect assets for equitable distribution to lenders.
And the Nevada State Contractors Board continues to keep close tabs on the company's financial condition.
John D. Reynen, co-founder of Reynen & Bardis Communities, filed for Chapter 11 personal bankruptcy reorganization in Sacramento last week.
The filing was a move to prevent a single lender, Bank of the West, from shouldering out other banks in an attempt to collect a $26 million debt, said Michele McCormick, spokeswoman for Reynen & Bardis.
Other major banks with loans outstanding include Wells Fargo, Colonial, Umpqua and Comerica. Reynen had personally guaranteed the loans.
"Restructuring will enable the company to keep building and selling homes," says McCormick. "They want to keep the company going and believe they can recover financially.
Reynen said the homebuilding company shouldn't be affected by the bankruptcy filing.
"We are working our way out of a period of serious economic challenge with the support of almost all of our financial partners,"
he said.
McCormick said Christo Bardis, the other co-founder of the company, has no plans to file a similar bankruptcy.
The Nevada State Contractors Board, meanwhile, instructed Reynen & Bardis to file monthly written reports on its financial condition. The board first heard a financial presentation from the company in March.
Meeting with the state agency last week, company executives said they're negotiating settlement with their lenders as well as
subcontractors who are owed money.
In northern Nevada, Reynen & Bardis developments include projects at Spanish Springs, Damonte Ranch, southwest Reno and Dayton.
Some of these communities are close-out communities, some have inventory available under construction to purchase and complete, and some will have new starts, the company has said.
The company also has residential projects in the Sacramento area and in Idaho.
Formed more than 30 years ago, Reyen and Bardis has largely shut down homebuilding and recently laid off about half of its 180 employees.
