Paul M. Pittman, one of four principals in a troubled Indianapolis-based condo developer, filed personal bankruptcy this week.
Pittman, an Indianapolis attorney, was the chief financial officer of Page Development, which spearheaded the Villaggio at Page Pointe condominium project in downtown Indianapolis as well as numerous condo developments in Florida.
Pittman is the second Page Development executive to file bankruptcy after the firm's real estate ventures were upended by the housing market crash. The owners have been involved in several lawsuits related to unpaid debt.
Pittman listed assets of $1 million and liabilities of nearly $14 million in his Chapter 7 bankruptcy filing. Pittman's major assets include two homes he and his wife own in Indianapolis and Naples, Fla. The liabilities are mainly from Pittman's business activity with Page Development.
The filing was made Monday in U.S. Bankruptcy Court in Indianapolis.
Pittman followed his cousin Tony Page into bankruptcy. Page, who was president of Page Development, filed Chapter 7 bankruptcy in July 2010, listing assets of $1.1 million and liabilities of more than $25 million.
Page Development CEO Peter J. Page and Chief Operating Officer Paul J. Page were the other principals of the company.
The foursome got into trouble after 2007, when demand for their high-end condos dried up. Banks such as J.P. Morgan Chase and Wachovia Bank foreclosed on condo units Page Development owned in Englewood, Fla. Pittman still bears responsibility for nearly $800,000 to Wells Fargo, which has since acquired Wachovia, according to bankruptcy documents.
A Florida investor, Kim Williams, won a judgment for Page Development’s failure to pay a promissory note of $163,222.
Closer to home, Indianapolis-based First Internet Bancorp won a judgment to collect on a $1.35 million loan on which Page Development had defaulted.
A message at Pittman’s downtown Indianapolis law office Friday morning was not immediately returned. A message left for Pittman’s attorney, David Krebs, was not returned.