Cutbacks at Laurelmor
Ginn Co. reduces staff

By Scott Nicholson

The Ginn Company has reduced its staff at Laurelmor and is still working to resolve credit issues after missing payments on a $675 million debt.

“Due to market conditions, we made reductions in staff, both in development and sales,” said company spokesman Ryan Julison Thursday.

“But we still have a presence at Laurelmor and are awaiting a final decision relative to the Credit Suisse negotiations.”

Laurelmor is one of four Ginn Company properties under a loan-agreement deadline after missing payments in June on $675 million in debt affecting four Ginn-owned properties.

Standard & Poor’s released a report in July that said two Ginn-affiliated companies, Ginn-LA CS Borrower LLC and Ginn-LA Conduit Lender Inc. did not make a principal and interest payment on the line of credit.

The missed loan payment applies to the 5,800-acre Laurelmor development in southeastern Watauga County and a portion of Wilkes County.

Two of the other affected properties are in Florida and one is in the Grand Bahamas.

Ginn Company president Robert Gidel issued a written statement in July that said, “While there is work left to do at Laurelmor, we have commenced work on much of the infrastructure, including the paving of miles of roadway and substantially completing the delivery of water and electric to the homesites.”

The company reported nearly 200 lots had sold in the first phase of the project.