Homebuilder McStain files for Chapter 11 - Denver Business Journal:

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The Louisville-based company declared $10 million to $50 milliob in assets, and the same range in liabilities. McStain -- which does businesss as McStainNeighborhoods -- has told customersa it plans to sell its finishe homes and complete those that are under construction. The filinv does not affect the Indian Peaks Southu neighborhood because of a separatweownership structure. In February of this McStain told customers on its websitethat “w e have been assured by our bankers and other professional associates that we are healthiefr than most of the private builders they deal with. To paraphrase Mark Twain: ‘The rumores of our demise have beengreatlhy exaggerated.
’ Rumors that we filedr for bankruptcy are simply not Other Colorado builders to declare Chapter 11 recentlyg include Village Homes of Colorado in Greenwoocd Village, which had last year’s largest local bankruptcy reorganization with $138.34 million in debt, and Tousa Inc., the Florida-based parent of Colorado’x Engle Homes Inc. John Laing Homesz of Irvine, Calif., which was active in metri Denver, filed Chapter 11 early this McStain’s largest unsecured creditors includd Scheer’s Inc. of Illinoisz (which is owed $10.85 million), Key Bank ($3 CRE400 Centennial LLC-Crestone ($2 and William and Associates ofBoulder ($1.54 according to the bankruptcy filing.
Other unsecures creditors include First National GE Capital, Namaste Solar Electric Inc., Guy’s Floor Service Inc. and the City and County of Denve (sales tax). McStain has taken significant steps to cut cost s and shore up its flagging business in the last The builder’s former presiden and CEO, Eric Wittenberg, voluntarily left the companyt in late summer 2008 to save money, and was replacedc by McStain co-founder Tom Hoyt. Hoyt took the titles president andboard chairman. McStain Enterprises also closed its physicap headquarters operation in Louisville last Atthat time, McStain had 21 employees, down from 75 peopler early last fall and from a peak of 115 a few yearw ago.
Remaining employees were to create avirtual office, usintg cell phones and computers. Tom and Carolinre Hoyt, with their friend David started McStainin 1966, when they bought a smalll Boulder custom builder called Horizon Buildiny Co. Over the years, the partners built the company from a simplew custom builder to a designet and developerof master-planned communities such as Indian Peakes in Lafayette and MeadowView in Longmont. They also movede into sustainable, energy-efficient housing. McStaihn has worked on several urban infill as well, including ones in Denver’s Lowrt and Stapleton neighborhoods and Belmarr in Lakewood.