Friday, November 09, 2007

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.

5 comments:

hankmeister said...

This is but one of many bankruptcies to come.

Bakersfield Bubble said...

This is the 7th large builder to go bust. 3 in Florida (one today), 1 in Ill, 2 in Az and this one.

The 13th largest builder in the country - TOA - will be bust soon. Stock is trading at $.30...

Professor Shays said...

Note that the case was filed in New York. That is likely by design in that it keeps most of the anticipated vocal creditors at a disadvantage because they are here on the West coast and the proceeding is on the East coast.

Ichabod said...

Bakersfield Bubble said...
This is the 7th large builder to go bust. 3 in Florida (one today), 1 in Ill, 2 in Az and this one.

The 13th largest builder in the country - TOA - will be bust soon. Stock is trading at $.30...


BUY LOW, SELL HIGH! LOL!

Curious said...

This is more shenanigans...Dunmore kept everything except the home building unit. They kept the land and all other subsidiaries (including a new house building company directed by 3rd gen Dunmores) and sold to an "unknown businessman" who, I believe, is an officer in a local (Sacramento) title company? I could be wrong about that, but Kane was still involved somewhere in the RE game prior to buying out Dunmore Homes...I just can't remember right now what part of RE he was involved in. It's all on sacbee.com, I confess to being too lazy to look it up right now.

Either way, the new owner immediately re-incorporated on the east coast. This sale completed after Dunmore stopped production on all of their developments, leaving all subs unpaid.

Somebody smarter than me needs to dig a lot deeper on this one.