Developer Averts Foreclosure By Filing For Bankruptcy

October 28, 1990|By Alan J. Craver | Alan J. Craver,Staff writer

Langford Ltd., one of the county's biggest developers, has filed for Chapter 11 bankruptcy protection to avert a foreclosure sale of 32 lots at the Amyclae Estates development near Bel Air.

U.S. Bankruptcy Court records in Baltimore show that Langford filed for bankruptcy on Oct. 17, one day before the Amyclae Estates lots were to be sold at public auction.

The lots were to be sold so the Commercial Bank of Bel Air could collect on the balance of $6.1 million in loans given to Langford, according to records in county Circuit Court.

Langford owes a total of $1,223,385 on the loans, court records show.

The seven loans were obtained by the Churchville-based company's president, Thomas J. Langford, and his wife, Frances, between June 1988 and October 1989, court records say.

The money was used to buy lots in the Amyclae development off Churchville Road, records show.

By filing bankruptcy under Chapter 11, Langford can protect its holdings from creditors as the company reorganizes itself under the instructions of a court-appointed trustee.

Langford has until Nov. 1 to provide bankruptcy court with a list of creditors, assets and debts, a court clerk said.

Commercial Bank also filed a petition in circuit court on Oct. 9 asking the court to order Langford to pay $10,000 that the developer promised to pay on Sept. 24 but never did, records show.

The bank asks the court to order Langford to pay interest on the $10,000 and attorney fees, which total $1,500, records show.

In addition, 11 contractors and suppliers have filed complaints against Langford in county circuit court to get money the developer owes them for their work at his developments, court records show. The complaints were filed between July and October.

Meanwhile, the Baltimore County Savings Bank of Perry Hall filed papers in Harford Circuit Court on Oct. 2 to recover $906,276 that Langford owes the bank for four loans totaling $932,251, court records show.

The loans were obtained by Langford and his wife between January and March for lots in the Overview Manor, Longmeadow and St. Anne developments near Bel Air, records say.

The records do not indicate whether a foreclosure sale on these lots has been scheduled.

The bankruptcy filing by Langford this week is the second time one of his companies has sought court protection.

Country Walk Ltd., a company in which Langford holds 50 percent of the stock, filed for Chapter 11 protection in August, according to bankruptcy court records.

Country Walk Ltd. lists assets of $7 million and debts of $9.4 million.

The company wants to develop a 570-lot residential subdivision at Route 24 and Wheel Road.

Langford is one of two major Harford County developers to face financial problems this year.

Developer Steven R. Hankins earlier this month averted a foreclosure auction on three of his holdings, including his 283-acre farm estate, by paying off the balance of the mortgages on the properties.

In August, the Courtland Square office building on South Main Street in Bel Air was sold for $1.4 million at a foreclosure auction after Hankins defaulted on a $2 million loan.

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