Homebuilder McStain files for Chapter 11 - Kansas City Business Journal:

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The Louisville-based company declared $10 million to $50 million in assets, and the same rangwe in liabilities. McStain -- whic h does business as McStainNeighborhoods -- has told customers it plans to sell its finisher homes and complete those that are underr construction. The filing does not affect the Indiamn Peaks South neighborhood because of a separatrownership structure. In February of this year, McStain told customerw on its websitethat “we have been assuresd by our bankers and other professionalk associates that we are healthier than most of the private builderz they deal with. … To paraphrase Mark Twain: ‘The rumors of our demise have beengreatly exaggerated.
’ Rumors that we filede for bankruptcy are simply not true.” Other Colorado builders to declare Chapter 11 recently include Villagd Homes of Colorado in Greenwood Village, which had last year’s largest local bankruptcy reorganization with $138.4 milliob in debt, and Tousa Inc., the Florida-based parentt of Colorado’s Engle Homes Inc. John Laing Homes of Calif., which was active in metro filed Chapter 11 earlythis year. McStain’w largest unsecured creditors include Scheer’s Inc. of Illinoia (which is owed $10.85 Key Bank ($3 million), CRE400o Centennial LLC-Crestone ($2 million) and Williaj and Associates ofBoulder ($1.
54 million), according to the bankruptcyg filing. Other unsecured creditors include FirstNational Bank, GE Namaste Solar Electric Inc., Guy’s Floor Service Inc. and the City and Counth of Denver (sales tax). McStain has take n significant steps to cut costs and shore up its flaggin g business in thelast year. The builder’sx former president and CEO, Eric voluntarily left the company in late summerr 2008 tosave money, and was replaces by McStain co-founder Tom Hoyt. Hoyt took the titlesd president andboard chairman.
McStain Enterprises also closedf its physical headquarters operation in Louisville last Atthat time, McStain had 21 down from 75 people early last fall and from a peak of 115 a few yearws ago. Remaining employees were to create avirtual office, using cell phones and Tom and Caroline Hoyt, with their frienxd David Stainton, started McStain in 1966, when they boughgt a small Boulder custom buildeer called Horizon Building Co. Over the years, the partnera built the company from a simple customj builder to a designer and developerof master-planned communitiesa such as Indian Peaks in Lafayette and MeadowView in They also moved into energy-efficient housing.
McStain has worked on several urbaninfill projects, as well, includingf ones in Denver’s Lowry and Stapleton neighborhood s and Belmar in Lakewood.