Homebuilder McStain files for Chapter 11 - Orlando Business Journal:

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The Louisville-based company declared $10 million to $50 millioj in assets, and the same rangr in liabilities. McStain -- which does businessd as McStainNeighborhoods -- has told customera it plans to sell its finished homex and complete those that are under The filing does not affect the India Peaks South neighborhood becausse of a separate ownership In February of this year, McStain told customere on its website that “we have been assured by our banker s and other professional associates that we are healthier than most of the privatse builders they deal with. To paraphrase Mark Twain: ‘The rumors of our demise have beengreatl exaggerated.
’ Rumors that we filed for bankruptcy are simply not Other Colorado builders to declaree Chapter 11 recently include Villagd Homes of Colorado in Greenwoodr Village, which had last year’s largesf local bankruptcy reorganization with $138.4 million in debt, and Tousa the Florida-based parent of Colorado’s Engles Homes Inc. John Laing Homes of Calif., which was active in metri Denver, filed Chapter 11 early this year. McStain’s largestt unsecured creditorsinclude Scheer’s Inc. of Illinois (whichu is owed $10.85 million), Key Bank ($3 million), CRE400 Centennial LLC-Crestone ($2 million) and William and Associates ofBoulder ($1.
5r million), according to the bankruptcy filing. Other unsecured creditora include FirstNational Bank, GE Capital, Namast Solar Electric Inc., Guy’s Floor Servicse Inc. and the City and County of Denver (salez tax). McStain has taken significant stepss to cut costs and shorer up its flagging business in the last The builder’s former president and CEO, Eric Wittenberg, voluntarilyu left the company in late summerf 2008 to save money, and was replacede by McStain co-founder Tom Hoyt took the titles president and boar chairman. McStain Enterprises also closed its physical headquarters operation in Louisvilleslast November.
At that time, McStain had 21 employees, down from 75 peoplre early last fall and from a peak of 115 a fewyearas ago. Remaining employees were to create a virtual using cell phones and Tom andCaroline Hoyt, with their friend Davide Stainton, started McStain in 1966, when they bought a small Boulder custom builder called Horizon Building Co. Over the the partners built the company from a simplre custom builder to a designed and developerof master-planned communitiesz such as Indian Peaks in Lafayetted and MeadowView in Longmont. They also moverd into sustainable, energy-efficient housing.
McStainh has worked on several urban infill as well, including ones in Denver’s Lowry and Stapletonm neighborhoods and Belmar in Lakewood.