Kimball Hill Homes and some of its subsidiaries have filed voluntary Chapter 11 petitions for reorganization in the United States Bankruptcy Court in the Northern District of Illinois. The Company's financial service businesses are excluded from the filing.
While its asset base remains strong, the Company has been impacted by many of the factors which have adversely impacted the homebuilding industry over the last 18 months. These factors have included the downturn in the housing market, severe challenges in the credit and mortgage markets, diminished consumer confidence, increased foreclosures and higher cancellation rates.
"Today's decision was difficult to make, but we believe it is in the best interests of all of our stakeholders," said Ken Love, president and CEO. "Filing for Chapter 11 will allow us to restructure our debt and other obligations, bringing our capital structure in line with current market realities."
"Our issues are financial, not operational. 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. We have had significant discussions with potential plan sponsors and our senior lenders already, and we hope to agree on a reorganization plan in the next 90 days," said Mr. Love. "We will continue to sell, build and deliver homes without interruption."
The Company said it has taken steps to ensure that all of its customer programs continue without interruption including its comprehensive warranties.
For more information, please visit kimballhillhomes.com. The Company has also established a toll-free information line for interested parties. The number is 877-631-3923.
| 
