Big Brother
10 years ago
Yeah what a complete disaster, I'm glad I never picked up any shares of this, I dodged a bullet there....phew.
SPRINGFIELD, MO (May 12, 2014) โ James River Holdings Corporation OTCQB: JRIV) today announced it has ceased operations.
In December 2013, the Company spun out its real estate division, Property Partners, LLC into a separate operating company owned pro-rata by James River shareholders. This, in response to overwhelming guidance from the investment banking community which repeatedly expressed distaste for real estate related investments as the Company sought to raise capital in meetings with New York investment banking firms. More recently, the investment banking firm contracted to raise capital for the company failed to deliver on assurances made regarding the bankability of the Company. This resulted in a cash flow crisis that has disabled the company from further operations.
Despite upbeat news reports regarding real estate in some parts of the U.S. real estate prices in Springfield, Missouri continue to languish, beating down valuations on the Property Partnerโs portfolio. An April 24, 2014 article from the New York Times titled Why the Housing Market is Still Stalling the Economy and a May 1, 2014 article from ETF.com titled Shiller: Allure of Home Ownership Fading clearly articulate the stream against which real estate investors continue to swim; a difficulty that plagued the Company and continues to affect Property Partners.
In January of 2014, Property Partners contracted Williams & Williams, the Tulsa, Oklahoma based real estate marketing firm to begin selling its portfolio to provide investors the liquidity anticipated at the time of their investment. In 60 days of marketing to thousands of buyers in its network Williams & Williams brought only three offers, at 12%, 27% and 55% of original bank appraisals. These offers were rejected as inadequate to pay off the mortgage debts on the properties. Total mortgage debt on the over 200 properties is approximately $13 million, all of which is personally guaranteed by the Companyโs largest shareholder, James Watts.
In March of 2014, Property Partners began soliciting competitive market analysis from Springfield, Missouri-based real estate firms. Those valuations came in at 45-75% of original bank appraisals, the higher valuations being barely adequate to pay off the mortgages on some individual properties.
Property Partners began listing for sale those properties whose competitive market analysis indicated a possible sale price adequate to satisfy the indebtedness for that particular property, and currently has over 100 individual properties listed. Response from buyers has been soft to date, with only 4 of over 200 properties going under contract.
Property Partners will liquidate its residential housing portfolio, attempting first to satisfy the outstanding mortgage balances. Upon complete payoff of all outstanding debts, the remaining proceedsโif anyโwill be distributed to unit holders. Shareholders are advised to assume such a distribution will not occur, but if it does, it will likely be two to five years away.
The impact of continued real estate valuation problems on the Company, coupled with its ongoing inability to raise additional capital, has hampered the Companyโs stock since the inception of trading. Though prices have been quoted on the Over the Counter exchanges, very few shares have traded, or are expected to.
The Company currently has a civil action filed against Robert G. Sorensen, Patricia J. Sorensen, and Thomas R. Sorensen seeking $16,000,000 in damages for breach of contract and fraud. The Company currently has a civil action against Anton & Chia, LP seeking unspecified damages for fraud. If the company prevails, proceeds will be used first to reduce corporate debt after which any excess would be distributed to shareholders.
The Company has ceased trading. Itโs remaining assets will be liquidated to pay off outstanding debt and negotiations with creditors to resolve outstanding debtsโwhich exceed the expected value of its remaining assetsโhas commenced. Apart from successful collection on the above lawsuits, it is not expected that anything will be left to distribute to shareholders once the debts are resolved. Shareholders should consult their tax advisor regarding the possible deductibility of any potential capital losses.
The Company has terminated Hanover-Elite, the firm handling its shareholder relations. No further information is available at this time. Any additional information will be disseminated through www.JRHoldings.com as it becomes available.
Big Brother
11 years ago
ONE TO WATCH โ JAMES RIVER HOLDINGS CORPORATION (OTCQB: JRIV)
Hanover|Elite is pleased to introduce James River Holdings Corporation (OTCBB: JRIV), one of our valued, new clients. The attached fact sheet endeavors to provide greater insight and perspective on the Company's business plan centered on growing their portfolio of diversified, profitable, entrepreneurial businesses operating in mature markets.
Through strict financial discipline, rigorous analysis and valuation, and a refusal to overpay for acquisitions, James River's proven management team sets targets, monitors performance and concentrates on resource allocation and portfolio management to help optimize growth, profitability and shareholder value.
Current portfolio companies include Springfield Property Management, which owns and manages 217 residential rental properties in Missouri (96% occupancy) and provides turnkey property management solutions to other commercial and residential property owners; and PaveCare, a company specializing in commercial pavement repair and parking lot maintenance services, mainly to big-box retailers
To view the full fact sheet, please click on the link directly below; or to receive a complete investor kit on James River Holdings and/or to be added to the Company's email database, please contact Hanover|Elite at 407-585-1080 or via email at JRIV@hanoverelite.com. Thank you!
Please click on the link below to view:
http://app.efcg.net/uploads/advisory/James_River_Holdings_Corporation_Corporate_Fact_Sheet.pdf
James River Holdings Corporation
Headquartered in Springfield, Missouri, James River Holdings Corporation is a diversified holding company engaged in acquiring controlling interests in established companies operating high growth, entrepreneurial businesses in mature markets. Current portfolio companies include Springfield Property Management, which owns and manages 217 residential rental properties in Missouri and provides turnkey property management solutions to other commercial and residential property owners; and PaveCare, a company specializing in commercial pavement repair and parking lot maintenance services mainly to big-box retailers. For more information, please visit www.jrholdings.com.
For more information on James River Holdings Corporation please contact Hanover|Elite at 407-585-1080 or via email at JRIV@hanoverelite.com.
Professional Regards,
HANOVER|ELITE
407-585-1080
Big Brother
11 years ago
On watch here after an interesting 8K
http://www.jrholdings.com/
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8853634
Completion of Acquisition of Disposition of Assets
On August 15, 2012, James River Holdings Corporation (the โCompanyโ) through its subsidiary Property Partners, LLC entered into an agreement to acquire all the assets of Springfield Property Management, Inc. including 12 single-family residential houses and nine undeveloped acres of land valued at $1,530,141 in exchange for the assumption of $1,197,896 of mortgages secured by first deeds of trust on the properties. The transaction was completed on September 25, 2012.
On August 15, 2012, James River Holdings Corporation through its subsidiary Property Partners, LLC entered into an agreement to acquire 92 single-family residential houses and two residential duplexes from Springfield Real Estate Fund 2009, LLC valued at $7,316,523 in exchange for 9,666,667 shares of stock and the assumption of $4,738,782 of mortgages secured by first deeds of trust on the properties. The transaction was completed on September 25, 2012.
On August 15, 2012, James River Holdings Corporation through its subsidiary Property Partners, LLC entered into an agreement to acquire 28 single-family residential houses from Springfield Real Estate Fund B-09, LLC valued at $2,346,758 in exchange for 3,333,334 shares of stock and the assumption of $1,529,492 of mortgages secured by first deeds of trust on the properties. The transaction was completed on September 25, 2012.
On August 15, 2012, James River Holdings Corporation through its subsidiary Property Partners, LLC entered into an agreement to acquire 26 single-family residential houses from Wilson Creek Real Estate Fund, LLC valued at $2,364,113 in exchange for 3,329,333 shares of stock and the assumption of $1,386,815 of mortgages secured by first deeds of trust on the properties. The transaction was completed on September 25, 2012.
On August 15, 2012, James River Holdings Corporation through its subsidiary Property Partners, LLC entered into an agreement to acquire 29 single-family residential houses from Railey Creek Real Estate Fund, LLC valued at $2,463,455 in exchange for 3,331,667 shares of stock and the assumption of $1,542,102 of mortgages secured by first deeds of trust on the properties. The transaction was completed on September 25, 2012.
On August 15, 2012 James River Holdings Corporation through its subsidiary Property Partners, LLC entered into an agreement to acquire 28 single-family residential houses from Jordan Creek Real Estate Fund, LLC valued at $2,415,300 in exchange for 500,000 shares of stock and the assumption of $1,871,195 of mortgages secured by first deeds of trust on the properties. The transaction was completed on September 25, 2012.
In summary, the above transactions resulted in the acquisition of 216 houses and nine acres of undeveloped land. These assets we believe are value of $18,436,290. The company issued 20,161,000 shares of stock and assumed $12,266,282 in mortgages secured by the assets.