WCI Communities, with developments in Florida, the Mid-Atlantic, and the Northeast has filed for Chapter 11 bankrupcy protection. WCI is the largest home builder to date to file bankruptcy in this housing down-cycle.
The rumblings on this have been around for a while and with the depressed housing market, there’s only so much a company like WCI can do.
WCI is majority owned by Carl Icahn’s investor group. Too early to tell how this will all shake out. The bankruptcy hearing is not shceduled until October. WCI owns lots of undeveloped land which they may be forced to sell at a steep discount to free up some cash.
August 4, 2008
Real Estate