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January 20, 2010
Representatives from Phillips Development & Realty (PDR) announced today a positive resolution with First Horizon Bank regarding their unwillingness to extend mortgages or fund development loans as previously agreed.
“First Horizon sued PDR in March of 2009 citing a default on their note,” stated Jesse Ray of Jesse Ray Attorney at Law, P.A. “The note on the corporate offices of Phillips Development & Realty, LLC had matured and First Horizon Bank had refused to extend the note, citing their intent to withdraw from the State of Florida.”
A wholly owned subsidiary of First Tennessee Bank, First Horizon received $866 million of TARP funds from the U.S. Government. Ray further reported that the resolution resulted in Texas Scarborough, Inc., purchasing the note and reaching a satisfactory agreement with their client, PDR.
“We are quite pleased with the resolution of this matter and with First Horizon,” said Donald E. Phillips, managing director of PDR. “We are disappointed they chose not to stay and help us rebuild in Florida, but plenty of others see the opportunities our great state has to offer. Our team is looking forward, as Phillips Development & Realty has signed a new lease and seeks to put this matter behind us.”
