St. John's Apartments Subject of Latest Lawsuit Against Henry Corp.

by Arkansas Business Staff  on Monday, Mar. 24, 2014 12:00 am  

St. John's Apartments in Little Rock.

Add one more to the pile of suits stacked on the remains of Little Rock’s Henry Corp.

The latest strike against the former property management group is a complaint filed against the company’s leader, David Henry, and his ex-wife, Madeline Henry, by Bank of the Ozarks.

The suit, filed in Pulaski County Circuit Court, is requesting enforcement on some bonds that the Henrys hold on one of their problem-plagued apartment complexes.

The complex in question is the St. John’s Apartments in southwest Little Rock. According to the suit, the Pulaski County Public Facilities Board issued bonds with a face value of $7.9 million on the buildings in December 2007. Initially, Regions Bank served as trustee on the bonds.

Henry Corp. defaulted on the bonds in July 2012. In September of that year, Regions sued Henry Corp. for failing “to keep the mortgaged property and personal property in proper order.”

In August 2012, the court appointed a receiver to the apartments. In November 2012, Bank of the Ozarks became trustee. According to a court update filed in February, the receiver resolved the apartments’ code deficiencies and the complex was released from court in August 2013.

However, the update noted that the apartments are delinquent on rent payments, real estate taxes, insurance dues and security bills.

According to the new suit, attempts to cure the Henry Corp. default have failed and the Henrys still owe $155,000 in principle, $748,351 in fees and interest and $34,501 in legal fees.

The bank is requesting that the court grant these sums as well as punitive fees.

Phone numbers listed for the Henrys have been disconnected.

 

 

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