Colorado Homebuilder Files for Chapter 11 Bankruptcy

The latest company to file for Chapter 11 bankruptcy as a result of the troubled economy is Colorado-based Village Homes of Colorado, Inc. The company is confident that the bankruptcy process will not have much effect on homeowners.

The homebuilding company, which filed for Chapter 11 bankruptcy voluntarily, has been suffering as a result of the overall slowdown of the housing market experienced throughout the country.

"This (bankruptcy) is a reflection of what's going on in the housing crisis and financial market, "said Cheryl Schuette, president and chief operating officer for Village Homes. "It's something we need to do in these challenging times."

Under Chapter 11 bankruptcy, companies are able to hold off creditors while they restructure and reorganize their finances. Companies who have protection under Chapter 11 bankruptcy are also permitted to stay in business during the reorganization process.

"We are using the Chapter 11 process as a tool that enables us to continue normal operations while we restructure our capital," said Schuette. "Our goal is to emerge from the (bankruptcy) process as a stronger, healthier, and more efficient company that will be newly positioned for success."

And despite filing for bankruptcy, the company intends to finish all projects that are currently in construction or under development. In a statement on its website, the company said it will make all possible efforts to ensure that costumers remain unaffected by the reorganization.

The 24-year-old company has gone through economically challenging times before, and said it looks forward to continuing to deliver and sell quality homes to its customers.

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