Reynolds Plantation may dump millions in assets to satisfy creditors

Why is this important? Because the Reynolds family is one of the most important underwriters of Republican causes and campaigns. From my AJC colleagues Rachel Tobin and J. Scott Trubey:

The developers of the Reynolds Plantation, one of Georgia’s most exclusive enclaves of vacation homes and golf courses, have floated a plan to sell off key assets like golf courses, clubhouses and even swimming pools to pay off $45 million in debt to impatient lenders.

The news about Reynolds Plantation came to light after a letter was sent to homeowners Thursday, detailing issues for the development that is about an hour and a half drive east of Atlanta on I-20 on Lake Oconee.

According to the letter, signed by Reynolds Plantation Chairman Mercer Reynolds III, a group of banks is demanding a hasty payment of $45 million by April. The payment was requested while the development company was negotiating renewal of a line of credit.

In the letter, Reynolds says he and his cousin, Jamie Reynolds, had “pledged a number of additional assets (totaling approximately $60 million) to the banks,” but the banks still want the large payment in two months. The cost of construction of the amenities being sold is about $136 million, the letter says.

- By Jim Galloway, Political Insider

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21 comments Add your comment

Jack

February 8th, 2011
11:03 am

That does not sound good!!!!

pn

February 8th, 2011
11:08 am

Who’s going to bankroll Bush III?

gene

February 8th, 2011
11:11 am

Dumping assets that are prime key to their established local business for a third of their cost(note.. not value) indicates this only scratches the surface of their issues.

porko

February 8th, 2011
11:13 am

How dare those ol mean banks not keep extending and pretending that the real estate is still worth what it was 5yrs ago. I would suggest the owners get the same wetlands(state dnr i believe) people that paid a huge profit for the land in central Ga (close to gov Perdues land) to buy their land. I would assume they have made bigger political donations so it is only right! Or they could get the nursing home corp that just hired gov deal son in law to buy some land from em for new corporate hdqtrs to help em out! My fellow repubs, we have bailed out banks so now we need to take care of our own! Don;t let these bailed out banks play hardball w our people!

another comment

February 8th, 2011
11:18 am

They have a bunch of corrupt builders and developers like Wilmont Williams still sitting out their in their 3.5 million dollar houses. Wilmont Williams was a big contributor to the collapse of several area banks. Wilmont with his Homes by Williamscraft, did alot of paper transfers of the land with his daughters and their closely held companies, inflating the land value. They then took out loans on the subdivision lots getting thier skin out. Letting banks, like Integrity, Bank of North Ga, and even Regions hold the bag when the market went south. They also screwed their subcontractors by not paying them. But good old Wilmont brother of John Williams of Post Properties fame still has his 3.5 million dollar house at Reynold plantation. The average homeowner in one of his subdivision lost 46% of their value or $300 -400,000 cash out of pocket. Just google the Atlanta Business Cronical article about Regions bank suing Wilmont for 6.4 million.

mel

February 8th, 2011
11:33 am

And the Jekyll Island Authority practically handed over Jekyll to this bunch; thank god that deal never went through.

TrishaDishaWarEagle

February 8th, 2011
1:16 pm

Never fear, Big Ben Roethlisberg is here..Actually, Reynolds owners are a who’s who list and they will probably buy out the assets being sold, to protect their PV’s. This is not big deal, really. 99.9% of projects are not pledged against a developers personal assets..why should they be..thats the beauty of the LLC.

Curious George

February 8th, 2011
1:27 pm

I am confused! They are going to sell assets to pay off their debts? Geez…why didn’t anyone else think of this? Yes, it is tough but better than filing bankruptcy. The average homeowner only loses if they sell their property at this time.

SpaceyG on Twitter

February 8th, 2011
1:43 pm

Republicans may have power, but they sure are broke!

What You Done Lately?

February 8th, 2011
7:38 pm

To: TrishaDishaWarEagle
You stated “99.9% of projects are not pledged against a developers personal assets..why should they be..thats the beauty of the LLC. I’d be willing to bet you’ve never been a member of even one LLC much less signed your name on the dotted line for a development loan. If you have, then please tell us your credentials. Until then, keep your ignorant comments to yourself.

Please show us where to find the research and documentation supporting your comment “99.9% of projects are not pledged against a developers personal assets..why should they be..thats the beauty of the LLC.”

Red

February 8th, 2011
8:49 pm

With W and Sonny gone, Mercer and Jamie don’t know what to do. They’ve milked this cow for all it’s worth. But I’m sure they have something tucked away to ensure their lifestyle. I just find it ironic that the native Greene County residents who despise those on the lake are now watching their county revenues dry up. Whatever will they do with those new fancy paved roads?

I still don’t understand why they renamed Port Armor. The name had historical significance to the area. Did the Reynolds family just hate the Armors or something?

D. Warbucks

February 8th, 2011
10:00 pm

“…a group of banks is demanding a hasty payment of $45 million by April.”

Why the NERVE of those banks, askin’ for their money back. Just watch. People like the Reynolds clan are so connected they’ll find a way to shift most or all of the hit to someone else – the homeowners, the taxpayers, someone.

Greedypeopleeatingood

February 8th, 2011
10:55 pm

I read in the Bible that this sort of thing will only be the tip of the iceberg and that we should be prepared for worse.
We talk about Banks, Bankruptcy and wars and weddings. But mention God and his place in our lives and all of a sudden everyone feels uncomfortable and wishes the conversation would change.
It can be uncomfortable if you don’t know the truth, but knowing what God say’s is more important than seeing trends in the stock market or building a safe room in your house. This is all very real and we are gonna see things change at a faster and more erratic pace.
Take the time to learn the truth.
The cares of this world are a smoke screen !
Read your Bible and learn.
Find out where the REAL Value is !!!!

I don’t put stock in the things of this world anymore. Ya gotta be in it, we are told. But come out of it.
Word of Advice….. Don’t store up your treasure in this world. The Bible is bankable…. you will never lose your investment.

Jim Palmer

February 9th, 2011
1:06 am

I purchased a lot at Reynolds and built a nice home in 1994 when prices were reasonable. Over the next 16 years until I sold the house in 2010, the Reynolds clan did all they could to make life miserable, literally telling me what kind of grass I could plant and begging me to contribute money for their employees at Christmas. Thank God I got out last year with 96% of my asking price. I happily reside in Montana now and do not miss Reynolds or its’ money-grabbing policies one bit!

Mae

February 9th, 2011
10:49 am

Red,
Sonny and W may be gone but Governor Deal chose Jamie Reynolds and Joe Tanner, big time lobbyist for the Reynolds family who was going to make a big fat commission on the deal on Jekyll.

And, Mel…don’t think everything will run smooth down on Jekyll now because not only are the 2 Jekyll grabbers above working for Deal but so is Steve Croy, Vice President of the Jekyll Island Authority board and head of their Legislative Committee. Folks around the state need to stay vigilant if they want to protect Jekyll Island State Park.

Keep an eye on Deal…he may have his sights on Jekyll too….probably does from the looks of his transition team!

Guillermo

February 9th, 2011
1:26 pm

Does anyone know who the lender was?

tbird

February 9th, 2011
4:33 pm

Unfortunately, I am one of the folks that bought into Reynolds Plantation. I have seen services cut back; two country clubs burn down, and little regard for members.

However, I don’t think we need to bankroll Mercer and Jamie Reynolds lifestyle. The boys are getting ready to buy another course and development at Lake Burton in April. Waterfalls will be their new acquisition. This was in Monday’s AJC.

I’m not looking for sympathy. It was my decision to buy, and I will eat the loses. However, just like Mercer, the bank is going to eat the tab.

Hasta la Vista, Aholes.

Just Wonderin'

February 9th, 2011
8:54 pm

Sorry about the homeowners and local taxpayers. The Reynolds clan will probably not feel this much in their personal lives. We heard they were trying to offload their Wyoming property too.

tbird

February 9th, 2011
10:13 pm

You are correct about the Wyoming home and property Reynolds owns. The house is huge and beautiful and includes a lot of land along the Snake River. Mercer has been trying to sell the property for over a year. The price tag is over ten million. Also, his wife is trying to sell dining chairs on consignment.

How do I know this to be true? We own a home in Jackson Wyoming, and all the players in that area knew Reynolds was in big trouble. Mercer was trying to impress the local Billionaires. however he never was in their league.

lakeboy

February 10th, 2011
9:45 am

Lake Oconee is a beautiful place and a wonderful community full of gracious hospitable people. It is unfortunate, but a necessary restructuring. And pledging $60 Million of assets as additional collateral does not exactly sound like they are getting off scott free. The unique beauty of this place and it’s proximity to Atlanta and frontage on Lake Oconee will ensure that the community will weather this storm.

Thinkagain

February 10th, 2011
3:21 pm

Lake Oconee is a beautiful area and Greene County has hospitable people. However, Reynolds Plantation is selling the assets that drew many to the area and their attention and funds are moving to other developments (Lake Burton, Achasta and North Carolina). Why should one more dollar be given to Reynolds (from banks, property owners, third parties) when in the best of times, they have shown they cannot operate facilities profitably, at their own admission.