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Elliot Building Group - Residential

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2007-06-10

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stories: bloomberg.com, builderonline.com

Elliot Building Group, a Pennsylvania-based home builder, filed for Chapter 11 on June 10, 2007. Elliot went from making revenues of $60 million plus in 2005 and 2006 to losing $5 million in 2007. Per the Bloomberg article reporting on their bankruptcy filing:

Elliott blamed the filing on "the slowing housing industry" and "the majority of secured lenders" who stopped funding construction draws. A court filing says that creditors were threatening to file an involuntary bankruptcy petition while more than 40 collections actions were proceeding in different locales.

Elliott said on its web site that it sold 181 homes in 2005. A court filing said Elliott has an order backlog of 77 homes. The company's two owners are Bradford Elliott and John DiPasquale.

An October 2007 article from Builder Online gave an update on the liquidation of Elliot Group's assets and remaining liabilities. Per Builder Online:

The builder's debt is estimated to be $88 million.

... While the company was attempting to reorganize after filing bankruptcy, the credit crunch hit. Elliott approached 20 finance groups since June but said he was "unable to put any deals together."

...

When asked if there are plans to reform the company after the auction, Elliott said, "There are plans for me to move forward but the Elliott Building Group will cease to exist."

If you have any further information with regard to Elliot Group's bankruptcy proceedings or the causes leading up to their filing, please let us know!

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Important: This company is on our list of builder operations that have "imploded" (see also ailing lenders). This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid declines in enterprise value; or abnormal "bail-out" by corporate parents or peers in order to continue to operate. The builders may be residential or commercial.