(Crain’s) — Amid the continued decline in new-home sales, developer Kimball Hill Inc. said Tuesday it would liquidate its assets rather than try to reorganize under Chapter 11 bankruptcy and continue in business.
Four months ago, CEO Ken Love predicted that the Rolling Meadows-based company would emerge from bankruptcy, even though some observers saw that option as a long shot.
Kimball Hill, which filed for protection from creditors on April 23, cited the recession and “escalating turmoil in the credit markets” as the reasons for the decision to begin winding down its operations and focus on selling itself off.
“Given the current housing and financial market conditions, we are simply unable to conduct normal operations while the company continues its sales efforts,” Mr. Love said in a news release. The decision is supported by the company’s senior lenders and the committee of unsecured creditors, Kimball Hill says. The company said it has ample cash to complete homes that are already under construction.
As of July, the company had about 575 employees nationwide.
No comments:
Post a Comment