A once-fast paced homebuilder that started his company in 1956 and over the years has expanded to eight different states – including Florida – recently had to file for Chapter 7 bankruptcy protection. Like many homebuilders over the past few years, business was expanding several years ago, but due to the recent housing crash, Pasquinelli Homebuilding LLC just wasn’t able to profitably continue to operate.
The Chapter 7 bankruptcy filing came late last week. According to the filing, the company has liabilities between $10 million and $50 million, but just between $500,001 and $1 million in assets. Despite the discrepancy, the owner of the company has said there should be assets left for some of the unsecured creditors.
In general, when a business files for Chapter 7 bankruptcy, the business itself actually closes down, and assets are forfeited to creditors, however, much of the debt can also ended up just being discharged.
When looking at what happened to the homebuilder who first started his business more than 50 years ago, the owner cites the housing crash. He also said that the actual business has not been operating for some time now, and that a complete liquidation of the assets seemed like the best thing to do to still at least preserve some of the value.
Pasquinelli Homebuilding LLC is also not alone in the decision to file for bankruptcy protection, as many other homebuilding and development companies in the area have also recently been forced to liquidate what was left.
Source: Chicago Tribune, “Homebuilder Pasquinelli files for bankruptcy,” Mary Ellen Podmolik, 8 April 2011