Half a year after closing the sales operations at his four decade year old company, The Estridge Group, Paul Estridge Jr. has just declared bankruptcy. Guarantees Paul made on some bad loans to The Estridge Group forced bankruptcy.
The Chapter 7 bankruptcy was filed on Thursday, September, 29 2011 in Bankruptcy Court located in Indianapolis. Paul lists debts over $95 million to over 40 creditors. The bad loans come from the Estridge Group. Assets are listed just over $9 million, a fraction of the looming debt.
Paul Estridge was instructed to file chapter 7 because he he foolishly guaranteed the outstanding loans made to the Estridge Group. In operation since 1967, Estridge shuttered sales operations this spring because of the Great Recession. The economic downturn in home sales crushed The homebuilders bottom line.
As a result of this bankrupcy Paul and his wife, Judy, must sell assets to pay off thier many creditors list in the bankruptcy filing. Paul must surrender both of his high priced homes—a Westfield manison along with a Florida villa. He must also sell most of his stuff in order to pay the debt he accumulated from his company. Paul hopes to one day buy back at the very least his Westfield manison once he pays his creditors.
Paul Estridge, 54, owes a list of creditors—suppliers, vendors and several banks in excess of $50 million, based on the U.S. Bankruptcy Court Southern District of Indiana bankruptcy filing.
Down But Not Out
Estridge became Indiana Division President & Chief Servant focusing on homebuilding operations for David Weekley Homes in the spring of 2011. David Weekly Homes, aregional Houston homebuilder, entered in the Indianapolis market in June of 2011.
Estridge, founded in 1967, this year became the latest central Indiana homebuilder to falter during the Great Recession. C.P. Morgan and Davis Homes both went out of busines in 2009, and Hansen & Horn Group last year.
Accross the nation new-home sales declined from 1.2 million pre-recession to 300K during the recession. Based on the Builders Association of Greater Indianapolis numbers. Building permits in central Indiana have dropped 72% since 2005.
New-home construction could fall even more this year. Even though the individual bankruptcy is going to be a major blimish on Paul Estridge’s FICO credit score for several years, Paul hopes this embarrassing ordeal will have little impact on his future homebuilding plans.