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MBD Inc. - California Home Builder

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2008-11-21

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stories: chicoer.com

Chico, California-based home builder MBD Inc. has filed for Chapter 11 bankruptcy protection. MBD was founded by Andrew Meghdadi and built nearly 60 homes a year at peak. Per an article on the bankruptcy filing:

Meghdadi said he anticipates the extension should give him enough time to complete the 191 homes planned. He plans to continue work on Belvedere Heights, located on 20th Street east of Bruce Road. He said 18 homes are currently completed and 173 are left to build.

A second subdivision called Sierra Vista, on Bruce Road, has four homes built and eight remaining. The builder said he would not build the remaining Sierra Vista homes ahead of time, but will start work on those homes as customer orders come in.

Meghdadi said he also has 223 lots mapped and ready to go for a subdivision in Red Bluff, but will wait to begin constructing those homes until the market rebounds.

We can't help but be a bit skeptical regarding these expectations: Meghdadi is only building about one house a month currently.

If you can provide any further details on MBD's bankruptcy filing, please comment below or email us.

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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.