THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, May 13, 1995 TAG: 9505130292
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: KNIGHT-RIDDER NEWSPAPERS
DATELINE: NEWPORT NEWS LENGTH: Short : 37 lines
The couple who saved the residential and commercial community of Kiln Creek from the verge of financial collapse in the early 1990s have themselves filed for bankruptcy in Northern Virginia.
Robert and Marilyn DeLuca and three of their businesses filed for bankruptcy after one of their partners and largest creditors, a former congressman, accused the couple in a lawsuit of mishandling his money and siphoning it away for their own purposes. Robert DeLuca said bankruptcy is a way to protect the couple's assets against creditors, particularly Joel T. Broyhill, the disgruntled business partner.
``Until it's resolved, it protects those assets,'' DeLuca said. He and his wife declined further comment on the Broyhill lawsuit, but said they plan to countersue next week.
The DeLucas also are seeking Chapter 11 bankruptcy protection from hundreds of other creditors, according to court documents, which list at least $25 million of debt.
Most of the people and businesses that are affected by the bankruptcies are not in this part of the state, court records show.
Marilyn DeLuca said Thursday that the bankruptcies and court actions will not affect Kiln Creek homeowners or the residential and commercial land that the DeLucas have yet to develop there. Kiln Creek, in Newport News and York County near Newport News-Williamsburg International Airport, is a 1,200-acre residential and commercial community that is home to about 8,000 people.
KEYWORDS: BANKRUPTCY by CNB