subslover
11 months ago
NEWS
Harbor Custom Development, Inc., Announces Chapter 11 Bankruptcy Protection Filing
TACOMA, Wash, Dec. 11, 2023 (GLOBE NEWSWIRE) -- Harbor Custom Development, Inc. (Nasdaq: HCDI, HCDIP, HCDIW, HCDIZ) (collectively with certain of its wholly owned subsidiaries described below, “HCDI” or “the Company”), a real estate company involved in all aspects of the land development cycle, and certain of its wholly owned subsidiaries today announced that the Company has voluntarily filed for protection under Chapter 11 of the United States Bankruptcy Code in the Western District of Washington at Tacoma (collectively, the “Chapter 11 cases”) to pursue an orderly wind down or restructuring of its business. The Company has filed a number of customary first day motions with the Bankruptcy Court that will allow it to continue operating in the ordinary course of business while it prepares a Plan of Reorganization to ensure that it can maximize value for the benefit of its creditors. HCDI will continue to market and sell finished lots and homes and to operate multi-family projects as they work towards stabilization.
Jeff Habersetzer, Interim CEO of HCDI, stated, “The Chapter 11 cases will provide the Company with time and breathing-room needed to market and sell its real estate assets and right-size operations for the benefit of the Company’s creditors and stakeholders.”
Additional Information
Resources for HCDI’s creditors and equity interest holders can be found by visiting the website at https://cases.creditorinfo.com/hcdi, including court filings and other documents related to the Chapter 11 process. Aditi Paranjype at Cairncross & Hempelmann, P.S. is serving as lead bankruptcy legal counsel to the Company.
About Harbor Custom Development, Inc.
Harbor Custom Development, Inc. is a real estate development company involved in all aspects of the land development cycle, including land acquisition, entitlements, construction of project infrastructure, home and apartment building, marketing, and sales of various residential projects in Western Washington's Puget Sound region; Sacramento, California; Austin, Texas; and Punta Gorda, Florida.
Forward-Looking Statements
subslover
11 months ago
On November 30, 2023, Harbor Custom Development, Inc., a Washington corporation (the “Company”), received a notice of event of default for failure to make payment of $8,000,000 of principal and $55,555.56 of prorated interest due on November 25, 2023 pursuant to the Company’s Loan Agreement with Fratelli’s LLC (the “Lender”), dated May 23, 2022 (the “Loan”). All amounts are now due and payable under the Loan. Additionally, a default interest rate of 18% is in effect as of the date of default.
Additionally, as previously reported on November 27, 2023, the Company failed to make a payment when due pursuant to the Company’s Loan Agreement with BankUnited, N.A. (the “Lender”), dated March 7, 2022 (the “Loan”) and the Amendment to the Loan Agreement, dated February 22, 2023 (the “Amendment”). On December 4, 2023, the Company received a notice of event of default and acceleration of all amounts due under the Loan from the Lender. According to the Lender, the principal amount due is $14,197,706.88 plus interest of $111,992.10 as of December 4, 2023 (the “Debt”). The Debt will accrue additional interest at the default rate from December 4, 2023, which rate floats at the contract rate plus 3%, until the Debt is paid in full.
novicetrader
1 year ago
Did HCDI have an Offering on May 11? Is that the reason for friday drop?Don't see any news release about it,but there's an SEC filing from May 11(link below):
https://www.sec.gov/Archives/edgar/data/1784567/000149315223016461/forms-1a.htm
Harbor Custom Development, Inc., a Washington corporation (“Harbor,” “HCDI,” the “Company,” “we,” “us,” or “our”) is offering up to 2,087,683 shares of common stock, together with warrants to purchase up to 2,087,683 shares of common stock at an assumed combined public offering price of $4.79 per share and warrant, which is equal to the closing price per share of our common stock on the Nasdaq Capital Market (“Nasdaq”) on May 9, 2023 (and the shares issuable from time to time upon exercise of the warrants) pursuant to this prospectus. The shares of common stock and warrants will be separately issued, but the shares of common stock and warrants will be issued to purchasers in the ratio of one-to-one. Each warrant will have an exercise price of $4.79 per share, will be exercisable upon issuance, and will expire five years from the date of issuance.