Settlement offered in failed Moody Housing project - WALB.com, Albany News, Weather, Sports

Settlement offered in failed Moody Housing project

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By Alicia Eakin - bio | email

October 1, 2008

VALDOSTA, GA (WALB) - A settlement is now available for the Subcontractors who lost millions in the Moody Family Housing project.

But they'll only get back cents to the dollar if they agree to the claim.

Attorney's for the Receiver of the Moody housing project have sent legal paperwork to all the subcontractors effected by the project.

Parties to the sale of the property have set aside $2.5 million.

Subcontractors who filed liens against the contractor could get up to 50% of what they are owed. Those who didn't file liens would be entitled up to 29%.

Some subcontractors are out several thousand, others up to $5 million.

Attorneys say this may be the last and best chance to recover money.  "This is a 'yes or no' proposition which was agreed upon by the parties involved in tech purchase and sale of the project, and we believe that it is the last and best chance for at least a partial recovery of the work you performed at Moody," court papers say.

 Congressman Jack Kingston says he will still work to get more.

"We've been working with the Air Force for a higher number than what it appears subcontractors will be getting. The latest indicator is that they'll get 29 cents on the dollar and while 100 cents on the dollar might be very difficult, we hope it's certainly higher."

The deadline for Subcontractors to sign the claim is October 24th.

Work halted on the Moody Housing project in January of 2007a after the contractor, American Eagle and the Carabetta Group stopped paying subcontractors.

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