A lot of us were surprised they lasted this long:
Aug. 4 (Bloomberg) — WCI Communities Inc., the homebuilder whose chairman is billionaire investor Carl Icahn, filed for Chapter 11 bankruptcy protection after failing to obtain new financing and losing 90 percent of its value in the past year.
Chief Executive Officer Jerry Starkey will leave the company and Chief Operating Officer David Fry, 48, will serve as interim CEO, Bonita Springs, Florida-based WCI said in a statement today. WCI is in talks to receive $100 million in debtor-in-possession financing from several lenders, the statement said.
WCI, which began developing master-planned communities in 1946, joins at least a dozen homebuilders that have sought bankruptcy protection since June 2007. Existing home sales in Florida, WCI’s biggest market, fell 5 percent in June to 11,700 and the median price tumbled 16 percent to $205,500, the Florida Association of Realtors said on July 24.
“The company, with all diligence, has attempted to avoid a bankruptcy filing,” Icahn said in the statement. “The filing became necessary because of the recent failed effort to obtain financing and the recognition that the company’s entire $1.8 billion of debt may soon be in default.”
Another big hit for lenders.
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