On Monday, I asked, “which homebuilder will go bankrupt next?” The answer came on the very next day: Legend Homes, an Oregon-based homebuilder. The Oregonian newspaper reports:
“Legend Homes, one of Oregon’s largest home builders, filed Chapter 11 bankruptcy today after its parent company made three ill-timed land investments in once hot housing markets.
David Oringdulph, Legend’s chief executive officer, said land purchases he made in Vancouver, Riverside, Calif., and Bend prompted the bankruptcy. The company sought land to expand its home building during the recent boom.
But when the market cooled, the projects stopped and the company got stuck holding land worth — in some cases — less than they owed on the property.
In the bankruptcy, the Tualatin-based company reported assets and liabilities between $100 million and $500 million. KeyBank is the largest creditor with a $22 million claim.”
–OregonLive.com, 10 Jun 2008
So it is.