Blog
Tarragon files Chapter 11 Bankruptcy
January 12, 2009 by admin · Leave a Comment
Amid the financial mess in the financing industry, it seems as its claimed another big Hoboken developer. Tarragon admitted that they and some of their subsidiaries are going to be filing for Chapter 11. Third-quarter earnings that showed a decline in third quarter revenue to $49 million, from $70 million in the same quarter last year, with losses from continuing operations of $58 million, forcing the residential developer to reorganize and seek the help of new financing.
It doesn’t seem as if Tarragon can look to National City for financing since they owe the bank over $40 million. Although the developer reorganized their loan with the bank in the past, it seems as if the financial crisis is not allowing them to do so and National City sent a notice of default and acceleration including sending a bill for $300,000 for unpaid interest and accrued interest on the loan.
Upper Grand and 800 Madison were the two big projects constructed by Tarragon. Constant lawsuits for faulty construciton and hazardous conditions have tainted the well known Hoboken, New Jersey real estate developer.
Shares fell from the peak of over $26 to just a measly $.16 recently. This is just an addition to some of Hoboken’s recent woes with the recent increase to the property taxes.
Tarragon’s operations are concentrated in the Northeast, Florida, Texas and Tennessee. Stay tuned for
Popularity: 1% [?]
