Homebuilder McStain files for Chapter 11 - Denver Business Journal:

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The Louisville-based company declared $10 million to $50 millionj in assets, and the same range in liabilities. McStaih -- which does business as McStainNeighborhoodsd -- has told customers it plans to sell its finishecd homes and complete thosre that are under The filing does not affect the Indian Peakds South neighborhood because of a separate ownership structure. In February of this year, McStain told customers on its websitdthat “we have been assurec by our bankers and other professional associates that we are healthie r than most of the private builders they deal with. … To paraphrass Mark Twain: ‘The rumors of our demisw have beengreatly exaggerated.
’ Rumors that we filed for bankruptcyy are simply not Other Colorado builders to declar Chapter 11 recently includ e Village Homes of Colorad o in Greenwood Village, which had last year’ s largest local bankruptcy reorganization with $138.34 million in debt, and Touss Inc., the Florida-based parent of Colorado’s Englde Homes Inc. John Laing Homes of Calif., which was active in metro Denver, filec Chapter 11 early this year. McStain’zs largest unsecured creditorsinclude Scheer’e Inc. of Illinois (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.
Otherf unsecured creditors include FirstNational Bank, GE Namaste Solar Electric Inc., Guy’s Floor Service Inc. and the City and Countuy of Denver (sales tax). McStaij has taken significant steps to cut costsa and shore up its flagging businessx in thelast year. The builder’s former presidenf and CEO, Eric Wittenberg, voluntarily left the company in late summer 2008 tosave money, and was replacedr by McStain co-founder Tom Hoyt. Hoyt took the titlea president andboard chairman. McStain Enterprises also closedf its physical headquarters operation in Louisvilldlast November.
At that McStain had 21 employees, down from 75 peoplr early last fall and from a peak of 115 a fewyear ago. Remaining employees were to create avirtual office, usingy cell phones and computers. Tom and Caroline with their friendDavid Stainton, started McStain in when they bought a small Boulder custom builder calledx Horizon Building Co. Over the years, the partnersw built the company from a simpls custom builder to a designer and developerof master-plannedr communities such as Indian Peaks in Lafayette and MeadowVie w in Longmont. They also moved into sustainable, energy-efficient housing.
McStain has worked on severa l urbaninfill projects, as well, includingy ones in Denver’s Lowry and Stapleton neighborhoods and Belmaer in Lakewood.