Federal court records reflect that state contractor Ballenger Construction Co. worried that a bank was going to repossess its equipment, The Valley Morning Star (Texas) reported Saturday. The public record also shows that the principals of the 75-year-old firm based in Harlingen, Joe C. Ballenger Jr. and Joe C. Ballenger Sr., had attempted to sell assets to avoid the bankruptcy action, but the prospective purchases did not materialize. The firm filed for chapter 11 protection in federal court in Corpus Christi, Texas, on Dec. 7 after defaulting on 22 statewide construction projects and listing liabilities of up to $50 million. U.S. Bankruptcy Judge Richard S. Schmidt has ordered Ballenger Construction to file a plan of reorganization within 120 days. The firm’s surety, Liberty Mutual Insurance Co., has taken over the projects, which are mostly with the Texas Department of Transportation, and is coordinating their completion, according to court records.
