C.C. Myers’ Controlled Companies Accept $43.9 Million Judgement

Two companies controlled by C.C. Myers have accepted a $43.9 million judgment against them. U. S. District Judge John A. Mendez approved  the judgement that will resolve a federal lawsuit over defaulted loans to a Placer County development. “The summary judgment does not involve the finances of either Mr. Myers personally or the highway company, C.C. Myers Inc.,”  Myers spokeswoman Beth Ruyak said.

In October 2005, Myers Homes of California, a real estate holding company, and Myers Homes Inc., a home builder, were guarantors on two loans totaling $65.7 million to develop Winchester, 1,100 acres of luxury residences and a country club off Interstate 80 north of Auburn.

Myers himself, as well as a family trust, were also guarantors, but he went into personal bankruptcylast year. This created an automatic stay on Wachovia Bank’s suit as it pertained to him and the trust. Neither the road construction company nor the Myers Homes companies are part of the bankruptcy.

Wachovia lent the Winchester project $30 million, and BankFirst of South Dakota lent $35.7 million. Wachovia acted for both lenders as the plaintiff in the suit.  Winchester defaulted on the loans in January 2007, and the suit was filed in December. On May 21, an entity set up by the two lenders to bid on the property bought it at a foreclosure sale for $25 million, which was deducted from the total loan amount.

As of Dec. 19, Myers Homes companies agreed to the $43.9 million judgment against them. That includes principal and interest on the loans and the lenders’ attorneys’ fees and costs. Interest will accrue at a daily rate of $9,831.89.

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Posted by Michelle Ventress on Jan 15 2009. Filed under News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.