Homebuilder McStain files for Chapter 11 - Business Courier of Cincinnati:

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The Louisville-based company declared $10 million to $50 milliomn in assets, and the same range in liabilities. McStai n -- which does business as McStainjNeighborhoods -- has told customerds it plans to sell its finished homezs and complete those that are under The filing does not affect the Indian Peakss South neighborhood because of a separate ownership In February of this McStain told customers on its websitr that “we have been assured by our bankers and othed professional associates that we are healthier than most of the privatre builders they deal with. … To paraphrase Mark ‘The rumors of our demisse have beengreatly exaggerated.
’ Rumorxs that we filed for bankruptcy are simply not true.” Other Colorad builders to declare Chapter 11 recently include Villag Homes of Colorado in Greenwood Village, which had last year’a largest local bankruptcy reorganizationb with $138.4 million in and Tousa Inc., the Florida-based parenf of Colorado’s Engle Homesz Inc. John Laing Homes of Irvine, Calif., which was activer in metro Denver, filed Chapter 11 early this McStain’s largest unsecured creditordsinclude Scheer’s Inc. of Illinoiz (which is owed $10.85 Key Bank ($3 million), CRE400 Centennial LLC-Crestone ($2 million) and Williamm and Associates ofBoulder ($1.
54 according to the bankruptcy filing. Other unsecurecd creditors include FirstNational Bank, GE Capital, Namastw Solar Electric Inc., Guy’s Floor Services Inc. and the City and County of Denvet (sales tax). McStain has take significant steps to cut costs and shor up its flagging business in thelast year. The builder’ss former president and CEO, Eric voluntarily left the company in late summefr 2008 tosave money, and was replaced by McStaij co-founder Tom Hoyt. Hoyt took the titlesz president andboard chairman. McStain Enterprised also closed its physical headquarters operation in Louisvillelast November.
At that McStain had 21 employees, down from 75 peoplse early last fall and from a peak of 115 a fewyearsz ago. Remaining employees were to create avirtual office, using cell phones and computers. Tom and Carolin Hoyt, with their friend David Stainton, started McStain in when they bought a small Boulder customk builder called HorizonBuilding Co. Over the the partners built the companyu from a simple custom builder to a designer and developerof master-plannes communities such as Indianm Peaks in Lafayette and MeadowView in Longmont. They also moved into energy-efficient housing.
McStain has worked on several urba ninfill projects, as well, including ones in Denver’s Lowry and Stapleton neighborhoodse and Belmar in Lakewood.