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

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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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Pops
7502
Points
Pops 12/31/13 - 06:09 pm
7
2
Well there goes

the new Five Guys Burgers on Broad St. More white collar jobs gone.

storiesihaveread
332
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storiesihaveread 12/31/13 - 06:23 pm
3
0
What

5 guys downtown Augusta?

Dixieman
13834
Points
Dixieman 12/31/13 - 06:34 pm
4
5
Calm down

Tenants not affected and the building will not explode. Only wrangle is over payment schedule or lender taking ownership of building. Nothing to see here folks; move along.

IBeDogGone
2930
Points
IBeDogGone 12/31/13 - 08:51 pm
5
0
GET REAL DIXIEMAN

Who is going to cover the shortage in Revenue? You and I the consumers who actually plan to pay back the money they borrow in higher interest. I miss the days when your word was better than your signature.

younameit
176
Points
younameit 12/31/13 - 10:06 pm
4
0
Shell games

Nothing to see here, Dixieman? Don't be fooled. Delta Woodside (Duckhead clothing) was a "shell game" where inventories were understated to cause stockholders and purchasers to believe sales were much higher than they actually were, and when that game was about to be revealed, DW ran a decoy by purchasing Nautilus and driving it into the ground along with DW.

Riverman1
81291
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Riverman1 01/01/14 - 01:21 am
4
0
There is what Dixieman said,

There is what Dixieman said, but there is also the problem of Bettis C. Rainsford. He's had lots of difficulties in all kinds of endeavors.

KSL
124688
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KSL 01/01/14 - 02:53 pm
2
0
Yep, most everything he

Yep, most everything he touches goes sourh, but somehow he comes out unscathed.

I would not lend him a nickle!

dwb619
89585
Points
dwb619 01/01/14 - 03:29 pm
2
0
KSL

X2
I don't know how much longer he will be able to by on the families(Daddy's) assets.

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