Banks hurt by construction firms' problems - KAIT Jonesboro, AR - Region 8 News, weather, sports

Banks hurt by construction firms' problems

SPRINGDALE, Ark. (AP) - Since June, more than a dozen bankruptcy filings have been made by construction-related businesses in northwest Arkansas, leaving more than $60 million in unpaid debt.

This comes after a four-month stretch in 2008 when a string of builder bankruptcies resulted in northwest Arkansas banks taking back $44 million in real estate.

The once-booming region that is home to the headquarters for Wal-Mart Stores Inc. and Tyson Foods Inc. has fallen on hard times since the economy went into a tailspin.

But some builders are laying the groundwork to prosper when the economy begins to recover. Developer John Nock says he has been cultivating relationships with lenders and is planning to start new building projects once the recession ends. --- Information from: The Morning News, http://www.nwaonline.net/

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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