Orleans Homebuilders gets financing approval
The developer Orleans Homebuilders Inc. said Friday that it has received approval from a Delaware bankruptcy court for financing to continue operating after filing for Chapter 11 protection.
The builder said it received interim approval for up to $26 million of a $40 million line of credit, including up to $11 million cash and up to $15 million worth of letters of credit.
Orleans filed for Chapter 11 bankruptcy protection Monday after defaulting on a $350 million loan last month.
The company 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.
Also Friday, the court approved motions to pay employee wage and benefit charges, maintain existing cash management systems and use its cash collateral. The company also received approval to continue mortgage and home warranty programs, pay amounts owed to homeowners' and condo associations, and honor claims for certain vendors.
The approvals allow the company to continue its homebuilding and management services operations, Orleans said in a news release.
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