Oregon home builder files for bankruptcy
1 of Oregon's largest home builders has filed for bankruptcy after its parent company made some bad land investments. Legend Homes' chief executive officer, David Oringdulph, says ill-timed purchases made in the once hot areas of Bend, Vancouver, Washington and Southern California prompted the bankruptcy.
Oregon home builder files for bankruptcy
Associated Press - June 11, 2008 3:55 PM ET
PORTLAND, Ore. (AP) - 1 of Oregon's largest home builders has filed for bankruptcy after its parent company made some bad land investments.
Legend Homes' chief executive officer, David Oringdulph, says ill-timed purchases made in the once hot areas of Bend, Vancouver, Washington and Southern California 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 that was sometimes worth less than what was owed.
Company executives hope to use Chapter Eleven bankruptcy to work out payment schedules with creditors and restart home building soon.
The parent company, Matrix Development, reported between $100 million and $500 million in assets and liabilities. According to the bankruptcy filing, it owes creditors about $91 million.
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