Orleans Homebuilders files for protection
The developer Orleans Homebuilders has filed for Chapter 11 bankruptcy protection after defaulting on a $350 million loan last month.
The company, based in Bensalem, Pa., said it was unable to complete a sale of the company before the filing Monday at U.S. Bankruptcy Court in Delaware, but was still pursing a deal.
"We regret the hardship that this filing will have on many of our trade suppliers," said Chairman and CEO Jeffrey P. Orleans. "We are arranging new financing that should be available almost immediately, pending court approval."
Orleans said it had $440 million in assets as of the end of last year, and liabilities of nearly $499 million. Its mortgage brokerage subsidiary, Alambry Funding, is not subject to the filing.
Orleans Homebuilders Inc. said it had secured up to $40 million in financing for operations while in bankruptcy. The company will continue operating.
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