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alstry (35.41)

DOWN goes another public HomeBuilder

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8

July 11, 2008 – Comments (4)

Unable to maintain sufficient interest reserves on $94 million in debt, beleaguered Virginia-based Comstock Homebuilding Cos. has stopped making scheduled interest or principal payments on the debt and has hired Brad Foster of FTI Consulting as an interim chief restructuring officer.

http://www.bigbuilderonline.com/industry-news.asp?sectionID=363&articleID=735788

As you know, I predicted half of all pubic homebuilders will be out of business or practically out of business by the end of the year.  3 out of 20 so far.....just seven to go......and just think.....a little while ago some of these guys were telling shareholders how wonderful the future looked as they were dumping their shares.

Lucky 7 or 11.....either one works.

4 Comments – Post Your Own

#1) On July 11, 2008 at 8:55 PM, DemonDoug (81.58) wrote:

Man it seems like these guys hang on forever CHCI was insolvent well over a year ago if i recall correctly.  The last time it was ratable on caps was January 2007.  Took a year and a half for it to finally go BK.

Speaking of 7-11, free slurpee day. :)

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#2) On July 11, 2008 at 9:20 PM, lquadland10 (< 20) wrote:

depression forcast (almost here.)  Buy gold.

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#3) On July 12, 2008 at 12:43 AM, hansthered0 (< 20) wrote:

Congrats on your recent rating spike alstry.

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#4) On July 12, 2008 at 9:37 AM, alstry (35.41) wrote:

FloridaBuilder, RIP, and I used to debate whether half of all public HBs were going BK by the end of the year.....the way things are looking right now we could easily be at 25% in the next couple months.

 

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