Gemcraft Homes Inc. one of the largest homebuilders in the United States, has announced that it and the land development company and affiliates have voluntarily filed to reorganize under Chapter 11 of the bankruptcy code because of the economic and market conditions existing in the land development and homebuilding industry.
With the filing the company announced that it anticipates having in place a total of approximately $37 million in new financing from two of its existing lenders, Regions Bank and M&T Bank, as well as a related party.
The financing, which is subject to bankruptcy court approval, is expected to provide adequate funding for all post-petition trade and employee obligations, as well as the company’s ongoing operating needs during the restructuring process.
The company also has asked the court, as part of its initial filings, to approve the honoring of existing warranties. According to Bill Luther, president of Gemcraft Homes, “Most importantly, we anticipate that the new financing, with the court’s approval, will ensure that Gemcraft Homes can complete building the many homes now in various stages of construction, so that our customers receive what they expect - a home of high quality and great value.”
Luther noted that he and the entire Gemcraft team look forward to completing the reorganization as quickly as the process permits, and expect to emerge as one of the leading builders in the Mid-Atlantic region for years to come.
|
