Kimball Hill Inc. announced Tuesday, Dec. 2 that the company will no longer seek to restructure under Chapter 11, for which it filed in April, but that it will now liquidate all assets.
In a statement released yesterday, CEO Ken Love said: "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. We believe it is appropriate to begin the wind-down process now to ensure the smoothest transition possible for our employees, our home buyers, the communities we serve, as well as our creditors."
Calls to Kimball Hill were not immediately returned.
Love went on to state that, over the next six months, the company will finish homes that are currently under construction, which is possible since the company still has access to $35 million from its debtor-in-possession financing facility. That combined with money coming in from home sales will enable Kimball Hill to fully fund all contractors, trade partners, and employee payrolls.
"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," 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."