Homebuilder McStain files for Chapter 11 - Portland Business Journal:

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The Louisville-based company declarerd $10 million to $50 million in assets, and the same range in liabilities. McStain -- which does businesws as McStainNeighborhoods -- has told customer s it plans to sell its finished homeas and complete those that are under construction. The filing does not affecy the Indian Peaks South neighborhooed because of a separateownership structure. In Februaryu of this year, McStain told customers on its website that “we have been assured by our bankers and othert professional associates that we are healthier than most of the privatwe builders they deal with. … To paraphras Mark Twain: ‘The rumors of our demiss have beengreatly exaggerated.
’ Rumors that we filed for bankruptcy are simply not true.” Other Coloradi builders to declare Chapter 11 recently include Village Homes of Colorad o in Greenwood Village, which had last year’es largest local bankruptcy reorganization with $138.4 million in debt, and Tousaw Inc., the Florida-based parent of Colorado’s Engle Homeas Inc. John Laing Home of Irvine, Calif., whicy was active in metro filed Chapter 11 earlythis McStain’s largest unsecured creditors include Scheer’s Inc. of Illinois (which is owed $10.85 million), Key Bank ($3 CRE400 Centennial LLC-Crestone ($2 million) and Williamj and Associates ofBoulder ($1.
54 million), accordingh to the bankruptcy filing. Other unsecured creditors include First National GE Capital, Namaste Solar Electric Inc., Guy’s Floor Service Inc. and the City and County of Denvefr (sales tax). McStain has takebn significant steps to cut costs and shore up its flagging businesxs in thelast year. The builder’s former president and CEO, Eric voluntarily left the company in late summer 2008 to save and was replaced byMcStain co-founder Tom Hoyt took the titles presidentf and board chairman. McStain Enterprises also closed its physicak headquarters operation in Louisvillelast November.
At that McStain had 21 employees, down from 75 people earlty last fall and from a peak of 115 a fewyearsa ago. Remaining employees were to create avirtual office, usinfg cell phones and Tom and Caroline Hoyt, with their friendf David Stainton, started McStaib in 1966, when they bought a small Boulder custom builderf called Horizon Building Co. Over the years, the partnerds built the company from a simple custom builder to a designerf and developerof master-planned communities such as Indian Peakds in Lafayette and MeadowView in Longmont. They also movefd into sustainable, energy-efficient housing.
McStain has worked on severaol urbaninfill projects, as well, includinfg ones in Denver’s Lowry and Stapletom neighborhoods and Belmar in