Oregon homebuilder files for bankruptcy
Wednesday, June 11, 2008 10:16 AM PDT
PORTLAND (AP) — Legend Homes, one of Oregon’s largest home builders, filed for bankruptcy after its parent company made some bad land investments.
David Oringdulph, Legend’s chief executive officer, said ill-timed purchases made in the once hot areas of Bend, Vancouver, Wash., 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.
‘‘If I hadn’t gone out and done all these deals, we’d be in great shape,’’ Oringdulph told The Oregonian newspaper Tuesday.
‘‘It was kind of like, ’How can this happen?’ It happened. It couldn’t have been worse.’’
Company executives hope to use Chapter 11 bankruptcy to work out payment schedules with creditors and restart home building as soon as possible. The parent company, Matrix Development, reported between $100 million and $500 million in assets and liabilities. It owes creditors $90.6 million, according to the bankruptcy filing.
Oregon builders, developers and contractors have been hurt in the downturn following the recent housing mania.
