Neville Log Homes of Victor, Montana ceases operations

Less than a year after receiving a $1 million low-interest loan through the Montana Distressed Wood Products Industry Recovery and Stabilization Program http://recovery.mt.gov/commerce/wpirs/default.mcpx , Neville Log Homes http://www.nevilog.com/ near Victor has ceased operations, and the owners plan to file for personal Chapter 7 bankruptcy in the next 60 days.

According to attorney Jon Binney of the Missoula-based Binney Law Firm, which represents Dick and Nancy Neville, the bank that managed the loan called in their line of credit in June and has since placed a lien on the assets of the company.

Binney said the owners weren’t delinquent on any payments, had complied with all loan payment requirements and that they even had customers lined up for next summer. However, Farmers State Bank http://www.farmersebank.com/ was unable to extend any more credit to help the business get through the slow winter season.

"The bank changed their position," Binney said. "This took away (Neville Log Homes’) ability to operate. The goal of this loan was to keep them in business until the economy recovered, but unfortunately that won’t happen now."

By DAVID ERICKSON

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