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Legend Homes - Home builder

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2008-06-04

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stories: bizjournals.com, oregonlive.com

It seems that despite insisting to the contrary, Legend Homes was in danger of bankrupty: they filed for Chapater 11 bankruptcy protection on Tuesday, according to this article from the Portland Business Journal

According to the article:

The company's senior managers decided to file bankruptcy to protect their home building operations from margin calls on land holdings by their lenders. Margin calls result when properties drop in value, pushing loan ratios beyond the terms of the original loan.

The company expanded into California and Bend with projects that failed.

Legend Homes reported between $100 million and $500 million in both assets and liabilities in court papers. It owes creditors $90.6 million, according to the bankruptcy filing.

Legend Homes was founded in 1965.

Original post to ailing, 2008-06-04:

The Oregonian reports that Lgend Homes Corporation stopped paying some 60 subcontractors in May after their major source of funding, KeyBank, turned off the spigot.

Though the company is saying they are in no danger of bankruptcy, they apparetnly have hired a turnaround specialist.

Further to the article, "Legend Homes is the fifth largest home builder in the Salem and Portland area" per the Construction Monitor. The company has been in business for 42 years. According to Legend's website (legendhomes.com):

Started in Portland, Oregon, in 1965, Legend Homes and Matrix Development have developed, designed and built approximately 12,500 homesites, homes, townhomes and condominiums.

If you can provide us any updates as to the status of Legend Homes, their ability to pay bills, or their ability to continue operating as a going concern, 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.