T.H. Properties

T.H. Properties (THP) is a suburban Philadelphia based builder with corporate offices located in Harleysville, PA. General partners of T.H. Properties are brothers Timothy Hendricks and Todd Hendricks, both of Harleysville, PA.

Currently, T.H. Properties has suspended their operations in an effort to reorganize. Before closing their doors on April 21, 2009, THP had projected the closing of 350 units in 2009, down from 385 in 2008 and 501 in 2007. On April 30, 2009, THP filed for Chapter 11 Bankruptcy protection.

They were the 8th fastest growing builder in 2007 with a 13% increase in home closings and a 24% increase in annual revenue. Inc. Magazine also ranked T.H. Properties as the 7th fastest growing U.S. company in 1997.

Legal Issues

In June 2008 the IRS filed tax liens in the amount of $1.1 million each against Tim and Todd Hendricks. According to the Hendricks brothers, the liens were a result of the IRS' "misunderstanding related to how THP is organized." The liens were filed in civil court against the Tim and Todd personally, and not the company.

In March 2009, Wachovia National Bank filed suit against THP And Co-founders Tim and Todd Hendricks. The bank is seeking to recover $4.5 million from THP and $7.6 million from each of the Hendricks brothers.

Also in March 2009, Continental Bank filed two lawsuits against TH Properties for a total of approximately $6.7 million dollars.

In April of 2009, Trans Fleet Concrete of Collegeville, PA filed a lien against THP for $90,000 worth of unpaid bills.

Court records also indicate several other subcontractors have filed liens including Bradco Supply Co. of New Jersey for upwards of $100,000.

Economic Problems

On April 20, 2009, T.H. Properties suspended all construction operations and laid off their entire workforce. At that time, THP had twelve communities activly under construction in Pennsylvania and New Jersey. It is unknown when construction will resume.

The following text was posted on T.H. Properties' website and was left as a message on the company's phone system:

T.H. Properties (Harleysville, PA – April 21, 2009) T.H. Properties, a Harleysville, PA-based developer and homebuilder, has temporarily suspended its operations and is actively exploring options to restructure its ongoing business operations. Like other homebuilders across the country, the recession and the collapse of the housing market have had a negative impact on the company’s operations. The company remains committed to an orderly restructuring of its obligations in order to continue its construction and development efforts throughout the region. T.H. Properties would like to thank its loyal vendors, valued employees, existing and prospective homeowners and the communities with which it has been operating during this difficult period.

Bankruptcy

On April 30, 2009, TH Properties filed for Bankruptcy in the United States District Court for the Eastern District of Pennsylvania in Philadelphia, PA. Three other affiliated debtors filed Chapter 11 petitions in the same bankruptcy court: TH Properties of New Jersey L.P., Northgate Development Co. L.P., and Morgan Hill Drive L.P.

In the filing, THP listed its assets as being between 100 million and 500 million dollars. The petition lists 20 creditors with claims totaling more than $11 million. The largest creditors listed in the bankruptcy filing include Jimmy Costa of Central Concrete in Southampton for $4.64 million; Marche Development in Schwenksville for $1.2 million; and Andrea Construction in Collegeville for $963,760. Souderton Area School District and Boyertown Area School District are also listed as creditors; with $57,102 owed to SASD and $82,294 for Boyertown.

There are two disputed claims, one for New Hanover Township for $500,000, and the other for Galyna Shvets of Cornwalls Way in Collegeville for $38,498. One claim by Accent on Beaute in Lansdale is listed as contingent at $51,400.

The claim also lists 17 potential cash collateral entities, including Wachovia Bank.

Charitable work

T.H. Properties has gained attention for its involvement in various charitable activities. Grammy nominated recording artist, Sarah Kelly, wrote the song Still Afraid for the company's involvement in helping neglected children in Cairo, Egypt.

See also

List of companies based in the Philadelphia area