Maronda Homes Inc. Files for Bankruptcy in Pennsylvania – Bloomberg
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Maronda Homes Inc. Files for Bankruptcy in Pennsylvania
By Dawn McCarty and Steven Church – Apr 18, 2011
Maronda Homes Inc., a residential developer based in western Pennsylvania, filed for bankruptcy, saying it owes creditors as much as $100 million.
The company, citing its inability to renegotiate credit terms, filed a Chapter 11 petition in U.S. Bankruptcy Court in Pittsburgh, Pennsylvania today, listing assets worth as much as $500 million. Chapter 11 is used by companies that plan to reorganize, reducing their debt and exit bankruptcy.
Maronda, based in Clinton, Pennsylvania, near Pittsburgh, builds homes in Florida, Pennsylvania, Georgia and Kentucky, according to the company’s website. The family-owned business has been building homes since 1972, court papers show.
“Given the situation with the lenders, the resulting liquidity, absence of credit availability and threatened foreclosure of its assets would inevitably to Maronda’s inability to pay its debts as they become due,” Maronda said in court papers. “Thus debtors were left with no option except to commence these bankruptcy proceedings.”
The builder said 13 of the 14 pre-bankruptcy lenders indicated they would agree to changes to the amended credit agreement dated March 8, 2010, provided the 14th bank agreed as well. Maronda failed to obtain the approval of Huntington Bank.
The case is In Re Maronda Homes Inc., 11-22418, U.S. Bankruptcy Court, Western District of
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