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

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The Louisville-based company declared $10 million to $50 million in and the same rangein liabilities. McStaihn -- which does business as McStainNeighborhoods -- has told customers it plans to sell its finished homes and completse those that are under construction. The filingb does not affect the Indian Peaks Soutgh neighborhood because of a separaterownership structure. In February of this McStain told customers on its websitsthat “we have been assuredd by our bankers and other professional associates that we are healthier than most of the privatre builders they deal with. To paraphrase Mark Twain: ‘The rumorxs of our demise have beengreatly exaggerated.
’ Rumors that we files for bankruptcy are simply not true.” Other Coloradi builders to declare Chapter 11 recentl include Village Homes of Colorado in Greenwooxd Village, which had last year’s largest local bankruptcy reorganization with $138.4 million in debt, and Touss Inc., the Florida-based paren of Colorado’s Engle Homes Inc. John Laing Homess of Irvine, Calif., which was activd in metro Denver, file d Chapter 11 early this year. McStain’s largest unsecured creditors includwe Scheer’s Inc. of Illinois (which is owed $10.85 million), Key Bank ($3 CRE400 Centennial LLC-Crestone ($2 million) and Willia m and Associates ofBoulder ($1.
5r million), according to the bankruptcy filing. Other unsecured creditorsa include FirstNational Bank, GE Namaste Solar Electric Inc., Guy’s Floor Service Inc. and the City and Countyg of Denver (sales tax). McStain has takenj significant steps to cut costs and shore up its flaggin business in thelast year. The builder’sw former president and CEO, Eric voluntarily left the company in late summer 2008 to save and was replaced byMcStain co-foundert Tom Hoyt.
Hoyt took the titlex president and board McStain Enterprises also closed its physical headquartersw operation in Louisville last Atthat time, McStain had 21 employees, down from 75 peopld early last fall and from a peak of 115 a few yeare ago. Remaining employees were to create avirtual office, usinv cell phones and computers. Tom and Caroline Hoyt, with their friend David Stainton, started McStain in 1966, when they boughtt a small Boulder custom builder called HorizonjBuilding Co. Over the years, the partners built the companhy from a simple custom builder to a designer and developerdof master-planned communities such as Indian Peaksw in Lafayette and MeadowView in Longmont.
They also movee into sustainable, energy-efficient housing. McStain has worked on several urbaminfill projects, as including ones in Denver’s Lowry and Stapleton neighborhoods and Belmar in Lakewood.