Woodside Homes files for Chapter 11 protection
Salt Lake City-based Woodside Homes, a national home builder with a large presence in the West and Southwest, has filed for Chapter 11 bankruptcy protection in California.
Earlier this year, Woodside Homes announced a plan to build more than 1,400 solar-powered homes in Sacramento, Calif., in conjunction with that city’s municipal utility district. The company said it still plans to build homes through the Chapter 11 proceedings, but the status of the solar project is unclear following the bankruptcy filing.
In a statement, Woodside Homes, said it intended to keep subcontractors, employees and others affected by the filing updated.
"Woodside will continue to operate in the normal course of business up to and beyond Sept. 16. Additionally, the company has been proactive with its subcontractors updating them daily as to the status of these proceedings,” the statement reads.
Investors and noteholders in Woodside Homes, including New York Life Insurance Co., Metropolitan Life Insurance Co. and JP Morgan petitioned to force Woodside Homes into bankruptcy after the builder defaulted on a total of around $730 million in loans.
The filing affects 185 of Woodside’s affiliated companies, primarily home builders under various banners throughout the country, such as Woodside Homes of Arizona, Woodside Homes of Florida and Woodside Homes of Minnesota. In all, Woodside operates in Utah, Arizona, California, Nevada, Minnesota, Texas, Florida and the suburbs of Washington, D.C.