California Luxury Home Seller Filing Chapter 7 Bankruptcy
John McMonigle made his name by selling some of the most expensive homes in America. But now he has some of the steepest debt in the nation and is filing Chapter 7 bankruptcy.
While he was with Coldwell Banker McMonigle was routinely one of the company’s top salespeople in terms of dollar amount, the OC Register reports. But after starting his own firm he encountered a series of problems. Lenders tightened up, prices fell on his properties, sometimes by tens of millions of dollars, and he began divorce proceedings with his wife.
McMonigle and his business list more than $50 million in debt against less than $10 million in assets. Default notices have been filed on company headquarters and several properties, although the group released a statement saying operations would continue.
The Newport Beach-based company, which will be filing Chapter 7 bankruptcy in California,began having problems last fall during the construction of a 12.5 acre estate. The original price tag for the estate was $87 million.
But the price dropped by $50 million, construction was halted and lenders began suing the company for defaulting on loans, reported the Orange County Business Journal. This isn’t the first time a McMonigle property has had its priced reduced by tens of millions of dollars.
Some of these properties may be in the bankruptcy to help keep the McMonigle Group going, but it’s unclear yet which ones will hit the market.