Wells Fargo lawsuit accuses RDC Properties of defaulting on multimillion dollar loan

The corporate owner of two of the largest buildings in downtown Augusta is being sued by one bank for allegedly defaulting on its multimillion-dollar loan.

 

The federal lawsuit filed on behalf of Wells Fargo names RDC Properties, a real estate investment firm owned mostly by Bettis C. Rainsford, of Edgefield, S.C.

In 2008, the company borrowed $6.35 million. The final payment was due June 30.

According to the lawsuit, Wells Fargo contends it is entitled to more than $5.48 million still owed on the loan, $96,138 in interest, $121,867 for property taxes, and legal fees.

The lawsuit doesn’t refer to RDC Prop­er­ties’ pending Chapter 11 bankruptcy filed in U.S. Bankruptcy Court in Augusta on Sept. 30.

According to the bankruptcy court documents, the note held by Wells Fargo is secured by 801 Broad St., which is the SunTrust Building.

RDC Properties also owes more than $2.65 million to Southern First Bank. That note is secured by the Lamar Building at 753 Broad St.

According to the company’s plan of reorganization, it proposes to repay both loans by making monthly payments for 25 years. The only other secured debt listed for repayment is $11,028 to Rainsford Development Co.

Under the plan, the combined rental income on the two buildings covers expenses, including employees’ salaries, and leaves $45,706 in monthly income for debt payments.

According to the bankruptcy petition, the company’s total assets are nearly $9.37 million and its total liabilities are more than $8.71 million.

Rainsford was a co-founder of Delta Wood­side Industries, a one-time member of the Fortune 500. He was also a founder of the exclusive Mount Vintage Plantation, a 5,000-acre golf and retirement community. After the community suffered financial troubles during the recent recession and Rainsford and his partner and the homeowners’ association engaged in a legal battle, Rainsford sold his interest in 2011.

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