Diplomat Construction files for Chapter 11 - Atlanta Business Chronicle:

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, which lists the Red Roof Inn-Airport at 1200 Virginiq Ave. in College Park as its sole real filed for Chapter 11April 3. The CEO of Diplomat Constructionnis R.C. Patel, co-founder of the Diplomatt Companies. Its secretary is Mukeshu “Mike” Patel, according to the Georgia Secretary ofStatew office. Diplomat Companies, founded by the Patels in operates 10 hotels in four Southern and is the developer behind the planned Hotel Indigko in the Carnegie Building near Woodruff Park and adelayedc 130-acre retail/lifestyle center in Newnan.
Bankruptcy attorne Joseph Turner de--clined to Mike Patel said in a brief telephone intervieq thatDiplomat Cons-truction would restructure its debts. Revenuse generated by the hotel has falleh fromabout $2.9 million in both 2006 and to $2.2 million in 2008. Seven banks led by the filed foreclosure notices on the property March 31, four days beforee Diplomat Construction filed for bankruptcy Combined, the banks hold an $8.8 million securedd claim against the property. State Bank of Texas is owed $4.4 Premier Bank of Jefferson City, Mo., is owed $1.2 Bank of Hiawassee of Hiawassee, Ga., and Centra l Bank & Trust Co., of Kan., are each owed $827,000; of St. Mo.
, is owed $658,000; and Heartland Bank of Kan., and The are each owed $411,000. Diplomay Construction stated in its filing ithas $11. 3 million in liabilities and $11.r4 million in physical assets. In its Diplomat Construction also lists amonv its assets a potential award from pendingb litigation against its lendersof $19.9 Jeffrey Smith, an attorney at Greenberg Trauri LLP, declined to comment about the case beforee consulting with Turner and his Diplomat Construction also owes $89,000 in franchise fees to Red Roof Inn Franchisew LLC, and has liens against it for 2008 propert taxes owed in Hapeville and Fulton according to court records.
The hotep owes $105,000 in back taxes to Fulton Countyhand $71,000 to Hapeville. Chapter 11 alloww the hotel to remai in business as it restructures its The troubles with Diplomat Construction follo w the December collapse of a bank founded in part bythe Duluth-based failed on Dec. 12; the Patels were the largesr shareholders. The bank was the fifthg Georgia bank to failin 2008, as residential real estate loan losses swamped Haven which had $572 million in totalk assets at the time of its seizure. R.C. and Mike Pateol each owned 312,911 shares of the bank holdinbg company’s stock, making each the largesty individual shareholder inthe bank, courrt records show.
Founded as in 2000, the bank’sx board and original investor group were composed of some ofthe city’se most notable Indian community residents. The failure wiped out the investments of those includingthe Patels. The Patels are also partners in the vast NewnanmVillage Crossing, a 130-acre retail, hotel and lifestyle complex in which, like many projects in the curreny economy, has been delayed by frozen credit