Kendall Hill has been on the verge of filing for Chapter 11 bankruptcy protection for several weeks. Problems began with the sudden downturn in the real estate market around the country, which led to a drop in sales and declining returns for the company.
However, lenders have now given Kimball Hill another month to work out a new loan agreement that could save the company from bankruptcy. The company had until Friday to renegotiate a $500 million line of credit with a group of banks.
Under terms of the agreement, the company cannot make further payments or borrow additional money for the purchase of land. Amidst concerns that the bankruptcy of Kimball Hill is imminent, the company’s bond dropped to a low of 13 cents for every dollar on the public market.
The company has several developments currently for sale in the Chicago region, including Legend Lakes in McHenry and Settlers Ridge in Sugar Grove. Other developments include Ingham Park in Aurora and the Waterford in Elgin.
The company is also active in California, Las Vegas, Texas, and southern Florida, all markets that have been hardest hit by the downturn in sales. Find great deals on Chicago Homes For Sale today.
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