Orleans Homebuilders Inc. of Bensalem Pa., filed for bankruptcy protection in Wilmington, Del., after failing to receive an extension of a $350 million credit facility,
the
P
hiladelphia Inquirer
reported.
While operating under an extension granted by its 17 senior secured lenders in mid-December, Orleans found a potential buyer for the company but was unable to complete a sale before the new loan maturity date of Feb. 12, Orleans said in a news release. That is when Orleans, hammered by the housing downturn …, defaulted on the loan. Some of the senior lenders had refused to agree to another extension, forcing the company to attempt to reorganize or sell the firm under Chapter 11 of the bankruptcy code.
Orleans has an agreement for $40 million in financing to use while in bankruptcy and will continue operating, the
Inquirer
reported. The company was founded in 1918; Jeffrey P. Orleans, grandson of the founder, is chairman and CEO.
Orleans shrank dramatically as the housing market collapsed. Its current workforce is about 300, down from 990 in June 2006.
(Source:
Philadelphia Inquirer,
March 2, 2010.)
-
680 reads