A toll-free restructuring information line has been established to answer questions from our trade partners, homebuyers, associates or other interested parties.
The number is (877) 631-3923.
Rolling Meadows, IL – December 2, 2008 – Kimball Hill Homes announced that as a result of the severe economic downturn and escalating turmoil in the credit markets, the Company has made the difficult decision to begin the wind-down of its operations with efforts to facilitate a sale of its business or a bulk sale of its assets to continue during this period.
Kimball Hill Homes is builder of The Villages At Natomas, located at 141 Caravaggio Circle.
The Company also filed its Chapter 11 plan, which is supported by the official committee of unsecured creditors and the Company’s senior lenders. The Company emphasized that homes currently under construction will be completed and delivered over the next six months.
“We deeply regret the necessity of today’s decision, but given the current housing and financial market conditions we are simply unable to conduct normal operations while the Company continues its sale efforts,” said Ken Love, Chief Executive Officer. “We believe it is appropriate to begin the wind-down process now to ensure the smoothest transition possible for our employees, our homebuyers, the communities we serve, as well as our creditors.”
The Company said that it continues to have access to more than $35 million from its debtor-in-possession (DIP) financing facility, which along with home sale proceeds will provide more than ample liquidity to fund payments to contractors and trade partners and meet employee obligations throughout the sale and wind-down process.
“We have maintained very strong relationships with our trade partners and suppliers during the bankruptcy and have appreciated their ongoing support, which we anticipate will continue as we complete homes currently under construction,” Mr. Love said. “The quick resolution of our trade partners’ pre-petition claims following the bankruptcy filing was a significant achievement and we will continue to pay our suppliers as work is completed throughout the process.”
“Over the last seven months, our employees have worked tirelessly to sustain our business in an unprecedented economic downturn. I want to thank them for their dedication, loyalty and commitment to Kimball Hill Homes,” concluded Mr. Love. “I am pleased that the Company will provide both severance and outplacement assistance to impacted employees, in accordance with the Company’s standard practices, throughout the sale and wind down period.”
The Company has asked for a hearing on January 13, 2009 to approve the Disclosure Statement accompanying the Plan.
The Company has established a toll-free information line for customers, homeowners, trade partners, and other interested parties. The number is 877-631-3923.
Speak Your Mind
You must be logged in to post a comment.