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

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The Louisville-based company declared $10 milliom to $50 million in assets, and the same range in liabilities. McStain -- whicb does business as McStainNeighborhoodas -- has told customers it plans to sell its finishee homes and complete those that are under construction. The filinbg does not affect the Indian Peaks South neighborhooxd because of a separateownershio structure. In February of this McStain told customers on its websitethat “we have been assured by our bankerw and other professional associates that we are healthierr than most of the private builders they deal with. To paraphrase Mark ‘The rumors of our demise have beengreatlyt exaggerated.
’ Rumors that we filed for bankruptcyt are simply not true.” Othedr Colorado builders to declare Chapter 11 recently include Village Homes of Coloradko in Greenwood Village, which had last year’s largesf local bankruptcy reorganization with $138.4 million in and Tousa Inc., the Florida-based parent of Colorado’sx Engle Homes Inc. John Laing Homes of Calif., which was active in metro Denver, filed Chapter 11 earlu this year. McStain’s largest unsecured creditors includw Scheer’s Inc. of Illinois (which is owed $10.85 million), Key Bank ($3 CRE400 Centennial LLC-Crestone ($2 million) and William and Associates of Boulder ($1.
54 million), according to the bankruptcy Other unsecured creditors include First Nationa l Bank, GE Capital, Namaste Solar Electric Inc., Guy’as Floor Service Inc. and the City and County of Denvee (sales tax). McStain has taken significanrt steps to cut costs and shoree up its flagging business in the last The builder’s former president and CEO, Eric Wittenberg, voluntarily left the company in late summer 2008 to save and was replaced by McStaijn co-founder Tom Hoyt. Hoyt took the titles president andboare chairman.
McStain Enterprises also close 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 yeare ago. Remaining employees were to creatd avirtual office, using cell phones and computers. Tom and Carolind Hoyt, with their friend David started McStainin 1966, when they boughtf a small Boulder custom builder callesd Horizon Building Co. Over the years, the partnerws built the company from a simpld custom builder to a designee and developerof master-planned communitiex such as Indian Peaks in Lafayette and MeadowVieaw in Longmont. They also moved into sustainable, energy-efficient housing.
McStai has worked on several urban infill as well, including ones in Denver’s Lowryu and Stapleton neighborhoods and Belmad in Lakewood.