More Homebuilders Expected To Duck Into Ch. 11

Law360, New York (February 10, 2009, 12:00 AM EST) -- Approximately 30 percent of U.S. homebuilders are in financial distress and could soon be pushed into insolvency, according to a new report.

Grant Thornton Corporate Advisory and Restructuring Services recently reviewed 33 U.S. homebuilders that earn more than $10 million in revenue and reported that many may be forced to file for bankruptcy as the housing market continues to sink.

"It's striking when you see just how much cash flow has continued to decline for the better builders," Grant Thornton partner John Bittner said. “This year...
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