Comstock Homebuilding Enters Agreement With Fifth Third Bank, Eliminating $1.3 Million of Debt on Raleigh, N.C. Project
November 11 2009 - 2:28PM
Marketwired
Comstock Homebuilding Companies, Inc. ("Comstock Homebuilding")
(NASDAQ: CHCI) today announced that its subsidiary, Comstock Homes
of Raleigh ("Comstock of Raleigh") had entered into an agreement
with Fifth Third Bank ("Fifth Third") to eliminate approximately
$1.3 million of secured debt related to Comstock of Raleigh's
Brookfield project located in Raleigh, N.C. The subject debt is
non-recourse to Comstock Homebuilding. Under the terms of the
agreement, Fifth Third agreed to release Comstock of Raleigh and
its affiliates from its obligations and guarantees relating to the
project loan and Comstock of Raleigh agreed to cooperate with Fifth
Third with respect to a foreclosure on a portion of the Brookfield
project. As an incentive to Fifth Third to expedite the foreclosure
Comstock Homebuilding agreed to enter into a non-interest bearing
unsecured promissory note in the amount of $25,000 with a
three-year term (the "Note") provided Fifth Third successfully
completes the foreclosure on or before February 28, 2010, unless
extended as provided for in the agreement (the "Deadline"). Should
Fifth Third fail to complete the foreclosure on or before the
Deadline, Comstock Homebuilding shall not be required to provide
the Note but the release issued by Fifth Third will nevertheless
remain effective.
"The agreement reached with Fifth Third Bank represents another
step forward for Comstock Homebuilding as we seek to complete our
effort to stabilize Comstock and position our company for
profitability in 2010," said Christopher Clemente, Comstock's
Chairman and Chief Executive Officer. "Although this loan was
non-recourse to Comstock Homebuilding, resolving this matter helps
ensure that we will be able to focus our energy on productive
initiatives in the coming year."
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 a variety of for-sale residential products. The company
currently actively markets its products under the Comstock Homes
brand in the Washington, D.C. and Raleigh, N.C. metropolitan areas.
Comstock Homebuilding Companies, Inc. trades on NASDAQ under the
symbol CHCI. For more information on the Company or it 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. Forward-looking statements involve
known and unknown risks and uncertainties that may cause actual
future results to differ materially from those projected or
contemplated in the forward-looking statements. 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 31, 2009. Comstock specifically
disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future
developments or otherwise.
Contact: Jeff Dauer 703.883.1700
Comstock Holding Companies (NASDAQ:CHCI)
Historical Stock Chart
From Sep 2024 to Oct 2024
Comstock Holding Companies (NASDAQ:CHCI)
Historical Stock Chart
From Oct 2023 to Oct 2024