Kimball Hill Homes, Based in Chicago Suburb of Rolling Meadows, Files for Chapter 11 Bankruptcy Protection!
BUILDER LATEST CASUALTY OF REAL ESTATE MARKET WOES!
Citing "challenges faced by the homebuilding industry," local builder Kimball Hill Homes has filed for bankruptcy protection here, but contends it will maintain normal operations while it restructures.
"Our issues are financial, not operational," said President and Chief Executive Ken Love. "The next step in our restructuring is to strengthen our capital structure and position our company to weather the current storm that has hit the housing and capital markets."
Chief Executive Love says he has entered discussions with potential investors, and hopes to have a reorganization plan in place within three months. In the meanwhile, Love contends, Kimball Hill "will continue to sell, build, and deliver homes without interruption."
The builder is currently marketing in several new-home communities in the Chicago suburbs of Bartlett, Naperville, McHenry, Sugar Grove, Shorewood, Elgin, and Aurora, among others. Our research in their Regency Oaks Community in the Village of Bartlett indicates their sales staff are deeply discounting remaining spec homes and home sites in that community.
Kimball Hill is among the top 25 homebuilders in the U.S., and has operated in Illinois, Ohio, Wisconsin, Oregon, Washington, Florida, Nevada, California, and Texas. It has stopped operations in many markets, including the states of Florida and Wisconsin, because they were not profitable. The builder employs nearly 500 people, 135 in Illinois. The company contends it lost $220 Million last year, due to declining sales in all of its market areas.
Read more details in Robert Manor's story in yesterday's Chicago Tribune.
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