September, 2008
LAKE OSWEGO, OR –Renaissance Homes announced today that they have asked for financial reorganization and protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. This chapter of the code allows for voluntary financial reorganization of its finances. Renaissance has obtained the complete support and cooperation of its major lenders (Sterling Savings Bank, HomeStreet Bank and Banner Bank). Renaissance will submit its reorganization plan for the court’s approval within days with the participation and support of their creditors.
Randy Sebastian, President of Renaissance Homes, issued the following statement: “Today we filed for reorganization and protection with the full support of our major banks. This action proved necessary because of the dramatically changed new home market in the communities we serve. With the unanimous support of our banks, we anticipate the court’s approval and we intend to fully repay all of our vendors and creditors within a reasonable, court approved time. We will restructure our financing and conduct business as usual while under the court’s supervision. Because of our lenders’ support, we will be able to obtain ongoing financing for the construction of new homes.”
In the plan, company President Randy Sebastian has pledged his financial support and participation in this reorganization which, with the commitment of their major banks, will enable Renaissance to fulfill their commitments to their creditors.
Sebastian said: “This is not an easy decision, but one which the slumping market has forced us to make. We have established our reputation by building personalized homes for our customers. In 2007, we built and sold more than 318 homes, 95 of which were homes for families who could not sell their existing home, thereby leaving us with lost revenue of nearly $52.4 million. Unfortunately, once you take out a loan and start building, you have no choice but to complete the home and trust that the buyer under contract will close. As the market slumped, our buyers were unable to sell their existing home, leaving us with their beautiful new home. We also worked hard to acquire long term land positions based upon future needs which simply did not materialize as the market fell.”
“We have every confidence that with our solid reputation, unsurpassed product and brand awareness, we will survive current market conditions and remain a premier homebuilder for decades to come. We are strong believers in the Northwest and in we will continue to deliver high quality homes to discriminating home buyers who know and appreciate a great value.”
Renaissance Homes
16771 Boones Ferry Road
Lake Oswego, Oregon 97035
Voice: 503-636-5600
Fax: 503-635-8400
Emergency Service: 503-496-0711 or 866-567-6225
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