Posted 7/15/2013 12:00 am
More financial travails have called on Little Rock businessman Phil Herrington.
Two weeks ago, we told you about a $4.7 million foreclosure action by Little Rock’s One Bank & Trust tied to his five-lot, upscale Founders Ridge residential project near Sundance Mountain Resort, Utah.
This week, the foreclosure action is taking place in Oklahoma City and centers on the 275-acre Gaillardia Golf & Country Club with its 7,240-yard championship course.
In late June, Gaillardia was placed into court-appointed receivership after tandem foreclosure moves by First Liberty Bank of Oklahoma City and Little Rock’s Bank of the Ozarks.
First Liberty foreclosed on a second mortgage with an outstanding balance of more than $1.5 million to start the court action. Bank of the Ozarks joined in the suit by foreclosing on its first mortgage with an outstanding balance of more than $6.8 million.
The Bank of the Ozarks debt additionally is secured by the personal guarantees of Herrington and his wife, Annette. Herrington has controlled Gaillardia for about 10 years.
Herrington offered this comment about Gaillardia via email:
“In our 27 years of business, all of our banks have been fully repaid on completed projects without exception. We have enormous respect for the Bank of the Ozarks as well as First Liberty Bank, and consistent with our record, they will be repaid in full at Gaillardia.
“We are also focused on the good firms who regularly do business with the Club, who will also be fully repaid. We are cooperating with all the parties involved to resolve this quickly for the benefit of the members.”