Homebuilder McStain files for Chapter 11 - The Business Review (Albany):

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The Louisville-based company declared $10 million to $50 million in and the same range in McStain -- which does business as McStain Neighborhoodas -- has told customers it plans to sell its finished homes and complete those that are undet construction. The filing does not affect the Indian Peaks Soutjh neighborhood because of a separateownership structure. In February of this McStain told customers on its websiteethat “we have been assured by our bankers and otherf professional associates that we are healthiefr than most of the private builders they deal with.
To paraphrase Mark Twain: ‘The rumore of our demise have been greatly Rumors that we filed for bankruptcy are simplynot true.” Other Colorado builders to declare Chapterf 11 recently include Village Homesz of Colorado in Greenwood Village, which had last year’s largestg local bankruptcy reorganization with $138.4 millioj in debt, and Tousaw Inc., the Florida-based pareng of Colorado’s Engle Homesw Inc. John Laing Homes of Calif., which was active in metro Denver, filed Chapter 11 earl y this year. McStain’s largest unsecured creditors include Scheer’s Inc. of Illinois (whichb is owed $10.
85 million), Key Bank ($3 CRE400 Centennial LLC-Crestone ($2 million) and William and Associates ofBoulder ($1.5r million), according to the bankruptcy filing. Othef unsecured creditors include FirstNational Bank, GE Namaste Solar Electric Inc., Guy’ s Floor Service Inc. and the City and County of Denver (sales McStain has taken significant steps to cut costs 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 McStaim co-founder Tom Hoyt. Hoyt took the titles president andboards chairman.
McStain Enterprises also closed its physical headquarters operation in Louisvillelast November. At that McStain had 21 employees, down from 75 peopler early last fall and from a peak of 115 a fewyearz ago. Remaining employees were to create avirtuapl office, using cell phones and Tom and Caroline with their friend David started McStain in 1966, when they boughr a small Boulder custom builder callede Horizon Building Co. Over the years, the partnerzs built the company from a simple custom builder to a designe r and developerof master-planned communities such as Indiahn Peaks in Lafayette and MeadowView in Longmont. They also movesd into sustainable, energy-efficient housing.
McStain has workes on several urbaninfill projects, as well, includinyg ones in Denver’s Lowry and Stapletonj neighborhoods and Belmar in Lakewood.