Pennsylvania developer files for bankruptcy
A residential developer recently filed for Chapter 11 after reporting it owed approximately $100 million to various creditors.
A residential developer recently filed for Chapter 11 after reporting it owed approximately $100 million to various creditors.
Maronda Homes Inc., based in Clinton, Pennsylvania, filed for Chapter 11 protection in U.S. bankruptcy court in Pittsburgh, according to a report. The company, which has been in business since 1972, listed approximately $500 million in assets.
In addition to building homes in its own state, the company also operates in Georgia, Kentucky and Florida, according to Bloomberg.
"Given the situation with the lenders, the resulting liquidity, absence of credit availability and threatened foreclosure of its assets would inevitably to Maronda’s inability to pay its debts as they become due," company representatives said in court documents, according to the news source.
The company announced that all but one of its pre-bankruptcy lenders are in favor of changing the current credit agreement as long as Huntington Bank, the final financial institution involved is okay with the decision, the news source added.
Chapter 11 filings allow for companies to reorganize debt and continue operation. Companies involved in the homebuilding sector have struggled since the housing bubble burst in 2007.
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