As the downturn in the real estate market continues to affect businesses and individuals around the country, several homebuilders are facing the specter of bankruptcy.
Kimball Hill Inc. is the latest company that is showing signs of financial difficulties as a result of the decline in sales around the Chicago region. The company is currently attempting to renegotiate a $500 million loan with creditors to avoid having to file for Chapter 11 bankruptcy.
If the Rolling Meadows-based company is unable to renegotiate the loans, bankruptcy could become the only option. The company has built heavily around Chicago, as well as in markets that have been particularly hard hit by the downturn in the real estate market, such as Florida and Nevada.
Bonds issued by the company have been hard hit on the public market. The company has about $200 million in bonds, and they are currently trading at under 20 cents on the dollar, a sign that the market has little faith in the ability of the company to successfully renegotiate its debt.
The downturn in the market has led to many deals for Chicago Homes For Sale in neighborhoods around the region.
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