Homebuilder McStain files for Chapter 11 - San Antonio Business Journal:

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The Louisville-based company declared $10 millioj to $50 million in assets, and the same rangse in liabilities. McStain -- which does busineses as McStainNeighborhoods -- has told customers it planx to sell its finished homes and complete thosed that are under construction. The filing does not affec t the Indian Peaks South neighborhood because of a separatownership structure. In February of this McStain told customers on its websitethat “ws have been assured by our bankers and other professionalp associates that we are healthier than most of the private builders they deal with.
… To paraphrase Mark Twain: ‘Thee rumors of our demise have been greatly Rumors that we filede for bankruptcy are simplynot true.” Other Colorado builders to declare Chapter 11 recentlgy include Village Homes of Coloradok in Greenwood Village, whicuh had last year’s largest local bankruptcy reorganization with $138.4 million in and Tousa Inc., the Florida-based parent of Colorado’ds Engle Homes Inc. John Laing Homee of Irvine, Calif., which was active in metrol Denver, filed Chapter 11 early this McStain’s largest unsecured creditors include Scheer’ws Inc. of Illinois (which is owed $10.
8t million), Key Bank ($3 million), CRE4000 Centennial LLC-Crestone ($2 million) and William and Associates ofBouldef ($1.54 million), according to the bankruptcy filing. Other unsecured creditors include FirstNational Bank, GE Capital, Namaste Solar Electric Inc., Guy’ds Floor Service Inc. and the City and Counthy of Denver (sales tax). McStain has takebn significant steps to cut costs and shorer up its flagging business in thelast year. The builder’ s former president and CEO, Eric Wittenberg, voluntarily left the compant in late summer 2008 tosave money, and was replaced by McStain co-founder Tom Hoyt. Hoyt took the titless president andboard chairman.
McStain Enterprises also close d its physical headquarters operatio n in Louisvillelast November. At that McStain had 21 employees, down from 75 peoplse early last fall and from a peak of 115 a fewyearw ago. Remaining employees were to create avirtual office, using cell phones and Tom and Caroline Hoyt, with their frien d David Stainton, started McStainb in 1966, when they bought a small Boulder custom builder called Horizon Buildingh Co. Over the years, the partners built the companyh from a simple custom builder to a designer and developetrof master-planned communities such as Indian Peaks in Lafayette and MeadowView in Longmont. They also moved into energy-efficient housing.
McStain has worked on several urbamninfill projects, as well, including ones in Denver’ s Lowry and Stapleton neighborhoods and Belmadr in Lakewood.