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 rang in liabilities. McStain -- which does business as McStaihNeighborhoods -- has told customers it planxs to sell its finished homes and complete thosew that are under construction. The filing does not affec the Indian Peaks South neighborhood because of a separateownership structure. In February of this year, McStaim told customers on its websitethat “wew have been assured by our bankers and otheer professional associates that we are healthierr than most of the private builderzs they deal with. … To paraphrasde Mark Twain: ‘The rumors of our demis have beengreatly exaggerated.
’ Rumors that we filed for bankruptcy are simply not true.” Other Colorado builders to declare Chapterd 11 recently include Village Homes of Colorado in Greenwoo Village, which had last year’s largest local bankruptcyg reorganization with $138.4 million in debt, and Tousa the Florida-based parent of Colorado’s Englew Homes Inc. John Laing Homes of Irvine, Calif., whic was active in metro Denver, filed Chapter 11 early this McStain’s largest unsecured creditors include Scheer’s Inc. of Illinoisw (which is owed $10.85 million), Key Bank ($3 million), CRE400 Centennial LLC-Crestone ($2 and William and Associatesa ofBoulder ($1.
54 million), according to the bankruptc filing. Other unsecured creditors include First National GE Capital, Namaste Solar Electri Inc., Guy’s Floor Service Inc. and the City and County of Denver (sales tax). McStain has taken significant steps to cut costd and shore up its flagging business in the last The builder’s former president and CEO, Eric voluntarily left the company in late summer 2008 to save and was replaced by McStaijn co-founder Tom Hoyt. Hoyt took the titles presidengt andboard chairman. McStain Enterprises also close d its physical headquarters operation in Louisvill elast November.
At that time, McStain had 21 down from 75 people early last fall and from a peak of 115 a fewyeard ago. Remaining employees were to create avirtualp office, using cell phone s and computers. Tom and Caroline with their friendDavid Stainton, startef McStain in 1966, when they bought a smal l Boulder custom builder called Horizonh Building Co. Over the years, the partners built the companyu from a simple custom buildetr to a designer and developerof master-planned communitiesz such as Indian Peaks in Lafayette and MeadowView in They also moved into sustainable, energy-efficient housing.
McStain has worked on severakl urbaninfill projects, as well, including ones in Denver’s Lowry and Stapleton neighborhoods and Belmar in Lakewood.