NEWS RELEASE


Date: April 23, 2008 
For immediate release 
Contact: Michele McCormick 
(916) 567-6309 
(916) 765-8056 

JOHN D. REYNEN FILES FOR PERSONAL BANKRUPTCY 
REORGANIZATION 

(Sacramento, CA) John D. Reynen, co-founder of Reynen & Bardis 
Communities, has filed for personal bankruptcy reorganization under Chapter 11 
of the United States Bankruptcy Code. The filing was made in United States 
Bankruptcy Court in Sacramento this morning and was precipitated by the 
impending expiration of the 90-day preference period under which writs of 
attachment held by the Bank of the West on various properties could still be 
undone. 

Reynen, whose largest creditors are almost all banks that lent money to 
Reynen & Bardis the repayment of which Reynen had personally guaranteed, 
characterized the filing as a painful step but one that was absolutely necessary to 
protect the interests of the creditor group as a whole. In its present situation, 
Reynen & Bardis is clearly dependent on the cooperation and goodwill of its 
creditors in restructuring loan agreements and continuing to fund new 
construction. Prior to making the decision to file, discussions were held with 
almost every major creditor and those banks were almost unanimous in their 


displeasure in seeing one bank attach for itself alone a disproportionate share of 
the assets that should have been available to all creditors equitably. Several of 
the banks had in fact indicated that displacing Bank of the West’s position was so 
important they were contemplating the extraordinary step of filing an involuntary 
petition against John Reynen personally. 

“Reynen & Bardis Communities should be unaffected by this filing; the 
company continues to build and sell homes,” said Reynen. “We are working our 
way out of a period of serious economic challenge with the support of almost all 
of our financial partners.” 

“This was a very difficult decision,” said Reynen. “But I believe that it is an 
essential step in continuing to demonstrate that we take very seriously our 
obligations to creditors, which we believe is a prerequisite to receiving the 
reciprocal support from those creditors that will allow the company to continue 
and thereby maximize the return to those creditors, as well as meeting our 
obligations to our homeowners, homebuyers and vendors and enabling us to 
continue to create outstanding communities as we have for more than thirty five 
years.” 

Reynen emphasized that this is a Chapter 11 filing (reorganization) and 
not a Chapter 7 filing (liquidation) and that accordingly he will remain actively 
involved in Reynen and Bardis Communities. 

For more information about Reynen & Bardis Communities, visit: 
http://www.rbcommunities.com/index.cfm