I got my answer on homebuilder bankruptcy

| 12 June 2008 07:00

On Monday, I asked, “which homebuilder will go bankrupt next?” The answer came on the very next day: Legend Homes, an Oregon-based homebuilder. The Oregonian newspaper reports:

“Legend Homes, one of Oregon’s largest home builders, filed Chapter 11 bankruptcy today after its parent company made three ill-timed land investments in once hot housing markets.

David Oringdulph, Legend’s chief executive officer, said land purchases he made in Vancouver, Riverside, Calif., and Bend prompted the bankruptcy. The company sought land to expand its home building during the recent boom.

But when the market cooled, the projects stopped and the company got stuck holding land worth — in some cases — less than they owed on the property.

In the bankruptcy, the Tualatin-based company reported assets and liabilities between $100 million and $500 million. KeyBank is the largest creditor with a $22 million claim.”
-OregonLive.com, 10 Jun 2008

So it is.

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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