Arizona home builder to exit Chapter 11
Fulton Homes, one of Arizona’s largest privately-owned home builders, has announced the confirmation of its reorganization plan in U.S. Bankruptcy Court. The company filed for Chapter 11 in 2009.
"Fulton Homes Corporation will repay all our creditors in full and has money in the bank," said CEO Douglas Fulton . "Our projections reflect that we will be able to self-finance our cash needs over the next four years and will not need any new bank financing." In addition, Fulton noted the company would operate as normal and continue developing new communities in the Valley.
According to Steve Walters, Fulton Homes' CFO, the banks will immediately receive $57.5 million dollars.
"Fulton Homes is coming out of the reorganization completely solvent and will operate without outside financial assistance," said Walters. "We are exceeding the projected sales and cash flows provided to the banks in our restructuring proposal."
Since filing in 2009, Fulton Homes Corporation has doubled its market share and has added several new communities, according to the RL Brown Report, the agency that measures home building activity.
Currently, Fulton Homes is adding five communities in Chandler and Queen Creek within the next year. Monterey Bay, their most recent community, is 90% sold out after being on the market for only four months, the company said.
Fulton Homes Sales Corp., which oversees and manages all sales and marketing functions, including customer care and home warranties did not file for bankruptcy protection. Fulton Homes Corporation handles land and acquisition duties for the home builder.