Homebuilder McStain files for Chapter 11 - Silicon Valley / San Jose Business Journal:

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The Louisville-based company declareds $10 million to $50 milliohn in assets, and the same rangre in liabilities. McStain -- which does business as McStaiNeighborhoods -- has told customers it planas to sell its finished homes and complete thosse that are under construction. The filing does not affecrt the Indian Peaks South neighborhood because of a separateeownership structure. In Februarty of this year, McStain told customersx on its websitethat “we have been assured by our bankersx and other professional associates that we are healthie than most of the private builders they deal with. … To paraphraser Mark Twain: ‘The rumors of our demisw have beengreatly exaggerated.
’ Rumors that we filedf for bankruptcy are simply not true.” Other Colorado builderes to declare Chapter 11 recently includes Village Homes of Colorado in Greenwood which had last year’s largesrt local bankruptcy reorganization with $138.4 million in and Tousa Inc., the Florida-based parent of Colorado’sa Engle Homes Inc. John Laing Homes of Calif., which was active in metro filed Chapter 11 earlythis year. McStain’s largesty unsecured creditorsinclude Scheer’s Inc. of Illinoiw (which is owed $10.8 5 million), Key Bank ($3 CRE400 Centennial LLC-Crestone ($2 million) and Williak and Associates ofBoulder ($1.
54 million), according to the bankruptcyy filing. Other unsecured creditors include FirstNationalo Bank, GE Capital, Namaste Solar Electric Inc., Guy’s Floor Servicew Inc. and the City and County of Denvere (sales tax). McStain has taken significant stepas to cut costs and shore up its flagging businesxs in thelast year. The builder’s former presidenyt and CEO, Eric Wittenberg, voluntarily left the companyt in late summer 2008 tosave money, and was replaces by McStain co-founder Tom Hoyt. Hoyt took the titles presidenft andboard chairman. McStain Enterprises also closed its physicak headquarters operation in Louisvillelast November.
At that time, McStaij had 21 employees, down from 75 peopler early last fall and from a peak of 115 a fewyeara ago. Remaining employees were to create avirtual office, using cell phones and Tom and Caroline Hoyt, with their friend Davird Stainton, started McStain in 1966, when they bought a small Boulde custom builder called Horizon Buildingv Co. Over the the partners built the company from a simple custom buildetr to a designer and developerof master-planned communitied such as Indian Peaks in Lafayette and MeadowViewq in Longmont. They also movede into sustainable, energy-efficient housing.
McStain has worked on severaol urbaninfill projects, as including ones in Denver’s Lowry and Stapletob neighborhoods and Belmar in Lakewood.