Orleans Homebuilders Inc., the 92-year-old Bensalem, Pennsylvania-based homebuilder, filed a Chapter 11 reorganization plan that it said will cut its debt by about half to less than $200 million.
The plan doesn’t provide for distributions to holders of equity interests, the company said today in a statement distributed by PR Newswire.
“We have spent the past few months negotiating with those holding more than 80 percent of the company’s secured debt to reach an agreement in principle with respect to a reasonable and fair treatment for all creditor classes,” Mitchell B. Arden, the company’s chief restructuring officer, said in the statement.
The company listed assets of about $440 million and debt of about $499 million as of Dec. 31, according to a statement filed March 1, the same day it sought bankruptcy protection. The builder was forced to seek bankruptcy after failing to win the unanimous consent required from its 17 lenders to extend the maturity of a $350 million loan.
The case is In re Orleans Homebuilders Inc., 10-10684, U.S. Bankruptcy Court, District of Delaware (Wilmington).