Loan troubles swamp veteran developer

Hank Wilton, a long-time Richmond developer with a family history in the business, has declared personal bankruptcy.

Wilton has 62 creditors, according to the bankruptcy filing and lists liabilities of $50 million to $100 million. He lists assets of $10 million to $50 million. That makes the case one of the biggest personal bankruptcy filings in Richmond since the recession began.

Wilton owes $67.8 million to the top 20 creditors alone, which includes local and national banks and other entities. That includes a total of $28.1 million to several local banks including First Capital and Union First Market are owed $6.6 million and $3.2 million, respectively, according to the filing. Franklin Federal Savings Bank is owed $2.7 million.

Over the last six months, banks have filed lawsuits against Wilton trying to collect unpaid loans on properties that went into foreclosure.

For example, Paragon Bank filed a suit in May against Wilton and Wilton Development Company seeking $333,143 over unpaid balances for lines of credit taken out by the company and guaranteed by Wilton.

The Wilton Companies, which owns, manages and develops property, is not involved in the bankruptcy filing. Hank Wilton is a shareholder and a member of the board of the Wilton Companies, but he stepped down from the role as chairman.

Paragon foreclosed and sold two parcels of property in the Westhampton Glen subdivision in Henrico and sold 81 foreclosed acres for $429,000, leaving an unpaid total of $272,853 after fees.
A project he was involved with called James River Commons went into foreclosure last month when a loan of $3 million went unpaid.

And Wilton also got behind on his loan payments for a proposed project in Steamboat Springs, Colo.

BizSense was unable to contact Hank Wilton for this story. You can read a more detailed story that quotes Wilton in a BizSense exclusive story here.

Bob Atack, a local homebuilder with decades of experience in the industry, said Wilton didn’t make any major gaffes in his business operations, but that his demise was the result of the economy.

“The real estate economy in Richmond is a lot worse than people think,” Atack said.

“Wilton, that’s an iconic family in real estate, and it’s the culmination and a reflection of what’s going on in the real estate market.”

Wilton is being representing by Robert A. Canfield, from the local firm of Canfield, Baer & Heller.

Much of the debt listed in the bankruptcy filing was secured by shares of the Wilton Companies as collateral.

Top five local creditors:
Hampton Roads Bankshares (including Gateway Bank and the former Bank of Richmond): $13.6 million
First Capital Bank: $6.6 million
E.C. Wilton: $4.9 million
Union First Market Bank: $3.2 million
Franklin Federal Savings Bank: $2.7 million

Aaron Kremer is the BizSense editor. Michael Schwartz contributed to this report. Please send news tips to [email protected]

Hank Wilton, a long-time Richmond developer with a family history in the business, has declared personal bankruptcy.

Wilton has 62 creditors, according to the bankruptcy filing and lists liabilities of $50 million to $100 million. He lists assets of $10 million to $50 million. That makes the case one of the biggest personal bankruptcy filings in Richmond since the recession began.

Wilton owes $67.8 million to the top 20 creditors alone, which includes local and national banks and other entities. That includes a total of $28.1 million to several local banks including First Capital and Union First Market are owed $6.6 million and $3.2 million, respectively, according to the filing. Franklin Federal Savings Bank is owed $2.7 million.

Over the last six months, banks have filed lawsuits against Wilton trying to collect unpaid loans on properties that went into foreclosure.

For example, Paragon Bank filed a suit in May against Wilton and Wilton Development Company seeking $333,143 over unpaid balances for lines of credit taken out by the company and guaranteed by Wilton.

The Wilton Companies, which owns, manages and develops property, is not involved in the bankruptcy filing. Hank Wilton is a shareholder and a member of the board of the Wilton Companies, but he stepped down from the role as chairman.

Paragon foreclosed and sold two parcels of property in the Westhampton Glen subdivision in Henrico and sold 81 foreclosed acres for $429,000, leaving an unpaid total of $272,853 after fees.
A project he was involved with called James River Commons went into foreclosure last month when a loan of $3 million went unpaid.

And Wilton also got behind on his loan payments for a proposed project in Steamboat Springs, Colo.

BizSense was unable to contact Hank Wilton for this story. You can read a more detailed story that quotes Wilton in a BizSense exclusive story here.

Bob Atack, a local homebuilder with decades of experience in the industry, said Wilton didn’t make any major gaffes in his business operations, but that his demise was the result of the economy.

“The real estate economy in Richmond is a lot worse than people think,” Atack said.

“Wilton, that’s an iconic family in real estate, and it’s the culmination and a reflection of what’s going on in the real estate market.”

Wilton is being representing by Robert A. Canfield, from the local firm of Canfield, Baer & Heller.

Much of the debt listed in the bankruptcy filing was secured by shares of the Wilton Companies as collateral.

Top five local creditors:
Hampton Roads Bankshares (including Gateway Bank and the former Bank of Richmond): $13.6 million
First Capital Bank: $6.6 million
E.C. Wilton: $4.9 million
Union First Market Bank: $3.2 million
Franklin Federal Savings Bank: $2.7 million

Aaron Kremer is the BizSense editor. Michael Schwartz contributed to this report. Please send news tips to [email protected]

Your subscription has expired. Renew now by choosing a subscription below!

For more informaiton, head over to your profile.

Profile


SUBSCRIBE NOW

TERMS OF SERVICE:

ALL MEMBERSHIPS RENEW AUTOMATICALLY. YOU WILL BE CHARGED FOR A 1 YEAR MEMBERSHIP RENEWAL AT THE RATE IN EFFECT AT THAT TIME UNLESS YOU CANCEL YOUR MEMBERSHIP BY LOGGING IN OR BY CONTACTING [email protected]

ALL CHARGES FOR MONTHLY OR ANNUAL MEMBERSHIPS ARE NONREFUNDABLE.

EACH MEMBERSHIP WILL ONLY FUNCTION ON UP TO 3 MACHINES. ACCOUNTS ABUSING THAT LIMIT WILL BE DISCONTINUED.




Return to Homepage

Subscribe
Notify of
guest
5 Comments
oldest
newest most voted
Inline Feedbacks
View all comments
Double 5 /8ths
Double 5 /8ths
11 years ago

I respect Bob Atack but I disagree with what he’s as quoted as saying in this article. It appears that Wilton got in over his head and the banks were into him for an extremely large sum of money. No matter how much money is thrown at something doesn’t necessarily mean that the problem will be fixed. It just prolongs the situation. $50 Million dollars? He took the largest and most successful local real estate operation in Richmond and reduced it to ruin. How is that a reflection of the market? It’s a reflection of business practices. He and a… Read more »

Mr powers
Mr powers
11 years ago

Richmond has too many wanna be rich rednecks acting like they know something since the easiest, cheapest money arrived to the market. Now that the easy money is gone they look like dumb rednecks again……………Case in point……………The federal club. Those guys that put that together are as smart as a nine year old. Lets build monster houses on small lots next to a chicken factory in a county with a bunch of overweight hillbillies!!!! Yeah this is smart.

Daniel
Daniel
11 years ago

Um, Mr powers, the Federal Club is several miles from the Tyson plant. I agree the plan for the Federal Club was flawed, but this reason you give is completely stupid, because it’s not true. The Tyson plant is right over the Henrico/Hanover line (in Hanover county), and the Federal Club is about 5 miles further down route 33/Mountain Road, just past Ashland Road.

Will
Will
11 years ago

Exclude the “chicken plant” mr. powers, and you are 100% correct.

Mr powers
Mr powers
11 years ago

yeah but……………..you still have to drive by that smelly place( the chicken plant) and it smells in the summer when we have that humidity! Now get back to work you have taxes to pay so that the other 90 % can get a meal ticket and some free stuff at the doctors office.