FAQ  |  Search  |  Memberlist  |  Usergroups   |  Register  |  Profile  |  Log in to check your private messages  |  Log in 

 Discussion on Woodside Homes View next topic
View previous topic



Post new topicReply to topic
Author Message
autopost
Schumpeter Reincarnate


Joined: 24 May 2008
Posts: 221497

Re: Discussion on Woodside Homes
PostPosted: Tue Aug 26, 2008 7:02 pm Reply with quoteBack to top

http://builder-implode.com/imp.....08-21.html
View user's profileSend private message
Aristotle
Nitroglycerin


Joined: 05 Dec 2007
Posts: 594
Location: On a sand dune, sipping a cold soda

Woodside Homes Creditors Get Nasty
PostPosted: Wed Aug 27, 2008 6:58 pm Reply with quoteBack to top

To anyone who believes that Woodside Homes can dig itself out of an involuntary Chapter 11 bankruptcy, dream on. In 30 years, I've never seen a debtor who is the target of a Chapter 11 involuntary get it dismissed. Creditors lawyers are very careful to make sure they are not wrongfully filed.

The interesting story here will be what Woodside Homes management did to so royally peeve all of these insurance company creditors. Usually creditors are too cheap and lazy to do an involuntary...so the story of what happened will be very, very interesting.

_________________
Aristotle

As Yogi Berra said "It's like deja vu all over again."
View user's profileSend private message
Alan Greenspan
Dud?


Joined: 27 Aug 2008
Posts: 1

Re: Discussion on Woodside Homes
PostPosted: Wed Aug 27, 2008 10:48 pm Reply with quoteBack to top

Last I checked, NVR (a top 25 homebuilder based on the East Coast) has more successfully navigated this downturn than any other large builder. And, they went through a Chapter 11 Bankruptcy in the early 1990's.
View user's profileSend private message
Aristotle
Nitroglycerin


Joined: 05 Dec 2007
Posts: 594
Location: On a sand dune, sipping a cold soda

What Made Woodside Homes Creditors Angry?
PostPosted: Fri Aug 29, 2008 8:33 pm Reply with quoteBack to top

The print press in communities with substantial connections to Woodside Homes many operations are starting to report on the involuntary bankruptcy cases. A few of those newspapers have simply reported Woodside Homes' public relations spin, i.e. that they will voluntarily file Chapter 11 on 9/16/08. Three newspapers have done a fairly good job of reporting, the Salt Lake Tribune, The Arizona Republic and the Riverside Press Enterprise. Each of those newspapers' stories disclosed that the Woodside entities were involuntarily dragged into bankruptcy. Two of the stories have unearthed background information which gives hints at why the creditors took the unprecedented step of filing involuntary bankruptcy petitions against 185 entities.

From 8/29/08 Salt Lake Tribune article on Woodside Homes:

"Woodside's agreement not to contest the bankruptcy followed an Aug. 21 motion by the noteholders to limit Woodside's business activities while U.S. Bankruptcy Judge Peter Carroll considered their involuntary bankruptcy request.

Woodside reorganized its corporate structure and triggered tax losses that benefited Woodside's equity holders, mainly Ezra Nilson and his family, without informing creditors during debt restructuring talks, the noteholders said in their filing.

The noteholders formed the view that a restructuring with the current equity holders and the current senior management team is not possible," according to the filing."

From the 8/28/08 Arizona Republic Story:

"Don Gaffney, a Phoenix attorney representing JP Morgan Chase, said Woodside and its many affiliates owe his client $335 million in unpaid debt. The builder owes another $370 million in bond and note debt to a list of investors that reads like a who's who of life insurance companies.

Creditors include Metropolitan Life Insurance Co., John Hancock Life Insurance Co., New York Life Insurance Co., and two others.

Gaffney said there also might be other debt owed to various contractors.

In addition to the scores of Woodside entities named in the bankruptcy proceedings, Gaffney said there are several more not yet included because attorneys still are trying to connect them to the parent company's debt.

"Woodside homes has a very large and complicated organizational chart," he said. "There are well over 200 entities, all indebted to these creditors."

Obviously, homebuilders and their owners negotiating with honesty, good faith and full disclosure, and not engaging in manipulations hidden from major creditors is more likely to produce a favorable work out and continued funding relationship. These major lenders concerted attack on the management of Woodside Homes provides a cautionary tale for public and private homebuilders playing in the mega million dollar big leagues.

Unlike other mega million dollar work outs, in and out of Chapter 11, in which major homebuilders have participated this year, apparently there is no debtor in possession financing in the offing, to be provided by the creditors who filed the involuntary proceedings. The Salt Lake Tribune also reported:

"Woodside continues to build and sell homes and pay employees and subcontractors, said Jennifer Mercer, a crisis management professional hired by the company to serve as its spokeswoman.

She said Woodside doesn't believe it will need a loan to fund operations during Chapter 11.

"The company has ample cash on hand to continue their operations," Mercer said."

Time will tell if that claim is true.

_________________
Aristotle

As Yogi Berra said "It's like deja vu all over again."
View user's profileSend private message
Display posts from previous:      
Post new topicReply to topic


 Jump to:   


Merge topics 

View next topic
View previous topic
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum




Powered by phpBB 2.0.22-2 (Debian) © 2001, 2002 phpBB Group :: FI Theme :: All times are GMT