Mathis Partners, LLC Files Voluntary Petition for Reorganization
April 01 2008 - 9:18AM
Marketwired
ATLANTA, GA , a Georgia limited liability company, today
announced that it had filed a voluntary petition for reorganization
in the Georgia courts. The action was in response to a foreclosure
proceeding scheduled for April 1, 2008, which was initiated by
Mathis' lender, Haven Trust Bank ("Haven Trust"), on the single
project owned by Mathis. The foreclosure proceedings were initiated
when Mathis and Haven were unable to reach an agreement with
respect to certain modifications sought by Mathis on an
approximately $5.0 million loan relating to the Gates of Luberon
residential development project in Forstyth County, Georgia (the
"Project").
Mathis is a single purpose limited liability company, which is a
wholly owned subsidiary of Comstock Homebuilding Companies, Inc.
(NASDAQ: CHCI) ("Comstock" or the "Company"). Mathis was formed by
Parker Chandler Homes, Inc. ("PCH") to develop the Project with
Haven Trust as its lender. The formation of Mathis and the
initiation of financing with Haven Trust pre-date the acquisition
of PCH by Comstock from PCH founders James Parker and Andrew
Chandler.
"For several months we have been trying to reach agreement with
Haven Trust regarding loan modifications that would allow for
successful completion of the project," said Bruce Labovitz, Chief
Financial Officer of Comstock. "This is a chapter 11 bankruptcy
filing of the Mathis Partners entity only and does not affect the
ability of Comstock to conduct the remainder of its business in any
way. This situation is not indicative of the relationships we have
with our other lenders. Other than Haven Trust, we have a group of
lenders made up principally of large, well capitalized, regional
and national banks that have a good understanding of current market
conditions and have demonstrated a commitment to Comstock. We
remain committed to the Gates of Luberon project and hope to be
afforded the time necessary to complete the development."
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies, Inc. is a
publicly traded, diversified real estate development firm with a
focus on affordable priced for-sale residential products. Comstock
builds and markets single-family homes, townhouses, mid-rise
condominiums, high-rise condominiums, mixed-use urban communities
and active adult communities. The company currently markets its
products under the Comstock Homes brand in the Washington, DC;
Raleigh, North Carolina; and Atlanta, Georgia metropolitan areas.
Comstock Homebuilding Companies, Inc. trades on NASDAQ under the
symbol CHCI. For more information on the Company or its projects
please visit www.comstockhomebuilding.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are predictive in
nature, that depend upon or refer to future events or conditions,
or that include words such as "may," "will," "expects," "projects,"
"anticipates," "estimates," "believes," "intends," "plans,"
"should," "seeks," and similar expressions, including statements
related to Comstock's expected future financial results and
anticipated growth in the Washington, DC housing market, are
forward- looking statements. Forward-looking statements involve
known and unknown risks and uncertainties that may cause future
results to differ materially from those projected or contemplated
in the forward-looking statements. These risks and uncertainties
include, but are not limited to, economic, market and competitive
conditions affecting Comstock and its operations and products,
risks and uncertainties relating to the market for real estate
generally and in the areas where Comstock has projects, the
availability and price of land suitable for development, materials
prices, labor costs, interest rates, Comstock's ability to service
its significant debt obligations, fluctuations in operating
results, anticipated growth strategies, continuing relationships
with affiliates, environmental factors, government regulations, the
impact of adverse weather conditions or natural disasters and acts
of war or terrorism. Additional information concerning these and
other important risks and uncertainties can be found under the
heading "Risk Factors" in the Company's most recent form 10-K, as
filed with the Securities and Exchange Commission on March 24,
2008. Comstock specifically disclaims any obligation to update or
revise any forward-looking statements, whether as a result of new
information, future developments or otherwise.
Media Contact: Bruce Labovitz Email Contact 703.230.1131
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