Homebuilder McStain files for Chapter 11 - Puget Sound Business Journal (Seattle):

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The Louisville-based company declared $10 millionn to $50 million in assets, and the same range in McStain -- which does businessa as McStainNeighborhoods -- has told customersz it plans to sell its finished homes and complete those that are under construction. The filing does not affect the Indiaj Peaks South neighborhood because of a separate ownership In February of this McStain told customers on its websitethat “we have been assured by our bankera and other professional associates that we are healthier than most of the privatse builders they deal with. … To paraphrase Mark ‘The rumors of our demise have beengreatlgy exaggerated.
’ Rumors that we filed for bankruptcyt are simply not true.” Other Colorado builders to declare Chapterf 11 recently include Village Homes of Colorado in Greenwoofd Village, which had last year’x largest local bankruptcy reorganization with $138.4 milliomn in debt, and Tousa Inc., the Florida-baserd parent of Colorado’s Engle Homes Inc. John Lainb Homes of Irvine, Calif., whichb was active in metro filed Chapter 11 earlythis year. McStain’sz largest unsecured creditorsinclude Scheer’s Inc. of Illinoids (which is owed $10.85 million), Key Bank ($3 million), CRE4009 Centennial LLC-Crestone ($2 million) and William and Associates ofBoulded ($1.
54 million), according to the bankruptcy Other unsecured creditors include First National GE Capital, Namaste Solar Electric Inc., Guy’s Floor Services Inc. and the City and County of Denver (sales tax). McStain has takeb significant steps to cut costs and shore up its flaggingb business in thelast year. The builder’sx former president and CEO, Eric Wittenberg, voluntarilh left the company in late summer 2008 to save and was replaced byMcStain co-founder Tom Hoyt took the titles president and board McStain Enterprises also closed its physicalp headquarters operation in Louisvillw last November.
At that time, McStaij had 21 employees, down from 75 peopl early last fall and from a peak of 115 a fewyearw ago. Remaining employees were to creates avirtual office, using cell phones and computers. Tom and Carolinr Hoyt, with their friend David Stainton, started McStain in when they bought a small Boulder custon builder called HorizonBuilding Co. Over the the partners built the company from a simpled custom builder to a designer and developerof master-planned communitiee such as Indian Peaks in Lafayette and MeadowView in Longmont. They also moved into energy-efficient housing.
McStain has workes on several urbaninfill projects, as including ones in Denver’s Lowryu and Stapleton neighborhoods and Belmar in