Co. files for
Its president said it becameBy Peter Wagner
overextended on loans to
Savio Development Co. has filed for Chapter 11 bankruptcy, looking for a way to reorganize and pay more than $50 million in debts.
Documents filed yesterday in U.S. Bankruptcy Court show the company with $45,775,572 in assets and $50,548,676 in debts.
Peter Savio, president of Savio Development, said today that the company became overextended in making personal loans to scores of first-time home buyers.
"For 15 years we never had a loss," said Savio, who said he often sold units below market value to allow first-time buyers into the market. "But due to the slow economy a lot of our buyers have lost jobs and been forced into bankruptcies, and that loss of income put a strain on our resources."
Other companies Savio operates, including Savio Realty Ltd. Better Homes & Gardens and Queen Emma Gardens Development Co., are not affected by the bankruptcy filing.
Savio reportedly has converted some 3,000 leasehold units to fee simple since 1981, many done in conjunction with what was then known as Kamehameha Schools/Bishop Estate.
The two biggest creditors are American Savings Bank and First Hawaiian Bank, each owed between $3 million and $4 million.
Other creditors include Bank of Hawaii, Finance Factors Ltd., First Federal Savings & Loan, Central Pacific Bank, City Bank, International Savings & Loan and Pioneer Federal Savings Bank.