Central Valley homebuilder goes bankrupt

From the Central Valley Business Times.com:

Dunmore Homes says it has filed for Chapter 11 bankruptcy protection to restructure its debts.
The company’s subsidiaries are not part of the filing.

The homebuilder, based in Granite Bay, has been in business for more than 50 years and has built thousands of homes in communities from Bakersfield to Yuba City, with concentration in the greater Sacramento area.

“We have engaged our lenders in a process to restructure our debts,” says Michael Kane, Dunmore Homes’ owner, “and while certain creditors took positions requiring us to seek the protection of the bankruptcy court, we intend to continue focusing on our restructuring efforts while ensuring all creditors are treated fairly.”

Dunmore Homes was recently sold to Mr. Kane, a Sacramento businessman, who immediately began restructuring efforts and hoped to resume construction and development operations as quickly as possible.

Construction activity was suspended in August.

“This was an action we did not want to take, but the success of our restructuring progress must remain the primary focus of the company in order to protect the best interests of our contractors, employees, homeowners and business partners,” Mr. Kane says.