Barratt American Goes Chapter 11

by The Editors on December 27, 2008

Sat-Biz-Barratt T350Bank of America says that Barratt American, the Carlsbad-based home builder, owes $79 million and it owes it’s to 20 unsecured creditors more than $21 million. That’s why, according to a story in the San Diego Union-Tribune, the company filed for Chapter 11 protection on Christmas eve.

The company has drastically scaled back operations in the past several months, slashing staff from about 140 employees to about 15. Company President Michael “Mick” Pattinson has been talking openly for a month about the possibility of bankruptcy as the company’s troubles mounted. . . . Pattinson said Barratt will continue to build custom homes and replacement homes for victims of last year’s wildfires while in bankruptcy. The company hopes to reorganize with the aim of starting new home construction again in 2010.

For the whole sad story read the rest of the article.

[Link: San Diego Union-Tribune]

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