Lenders Send Maronda Homes Into Ch. 11

Law360, New York (April 19, 2011, 5:03 PM EDT) -- Maronda Homes Inc. filed for Chapter 11 bankruptcy on Monday in Pennsylvania after a minor member of the homebuilders’s lending consortium refused to go along with an out-of-court debt restructuring.

Despite improvements in the housing market, Maronda entered bankruptcy to avoid foreclosure and gain access to liquidity denied to it by lenders that have claimed all the proceeds from the sale of mortgaged properties, according to the Chapter 11 filing.

While the collapse of the housing market and related credit crisis sent many homebuilders into liquidation,...
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