American Continental Corporation
| Company type | Public |
|---|---|
| Industry | Real estate, home construction |
| Founded | 1978 |
| Founder | Charles Keating (chairman) |
| Defunct | 1990 |
| Fate | Filed for Chapter 11 bankruptcy and liquidated |
| Headquarters | Phoenix, Arizona , United States |
Key people | Charles Keating (chairman) |
Number of employees | 2000 (1981) |
American Continental Corporation was a real estate enterprise headquartered in Phoenix, Arizona that operated primarily during the 1970s and 1980s.
History
Established in 1978 as a spin-off from American Financial Group, the firm specialized in residential home construction. Its chairman, Charles Keating, moved to Phoenix to oversee the company’s activities.
By 1981, American Continental had grown to employ approximately two thousand individuals and emerged as one of the foremost land developers in Arizona, benefiting from the state's booming housing market.
In February 1984, the corporation purchased the financially troubled Lincoln Savings and Loan Association for $51 million. The company’s portfolio consisted of Arizona real estate, junk bonds, and mortgage-backed securities. Lincoln Savings engaged in aggressive, high-risk land development projects and complex financial transactions, including lending funds to its parent company. Although American Continental remained profitable through much of 1987, mounting losses occurred in 1988 due to Lincoln’s deteriorating financial condition. By 1989, Lincoln represented 90 percent of American Continental’s total assets.
On April 13, 1989, American Continental filed for Chapter 11 bankruptcy protection and was ultimately liquidated in December 1990. This failure led to substantial losses for investors and played a pivotal role in the 1980s Savings and loan crisis as well as the Keating Five political controversy.
Archival interest
The Arizona State University Department of Archives and Special Collections holds an extensive collection exceeding 1,800 linear feet of records from American Continental Corporation. This archive contains correspondence, architectural and land use plans, marketing materials, environmental and regulatory documentation, legal papers, and financial records pertaining to the company and its subsidiaries from 1971 through 1993. Certain portions of the collection are subject to court-imposed access restrictions.