Village Homes of Colorado Inc., a developer of more than 10,000 homes in the state, filed for bankruptcy protection, blaming credit restrictions and the collapsed U.S. real estate market.
The 24-year-old builder, based in Greenwood, has assets of $103.8 million and debt of $138.4 million, according to a Chapter 11 petition filed Thursday in the U.S. Bankruptcy Court in Denver.
The filing was ultimately triggered by "inappropriate actions" by lenders, the builder said.
The biggest secured creditor is Guaranty Bank, a unit of Guaranty Financial Group Inc. of Austin, with a claim of $86 million, court papers show. GMAC LLC and its Residential Capital hold a combined secured claim of $36.1 million.
Village Homes said in court papers that its lenders breached a financing agreement by "refusing to fund the vast bulk" of its requests. It did not elaborate and would not identify the lenders.