Harbor Custom Development Inc. (NASDAQ:HCDI) announced it has voluntarily filed for protection under Chapter 11 of the United States Bankruptcy Code in the Western District of Washington at Tacoma.
In a statement, the company said it has filed several 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. In the meantime, it plans to continue to market and sell finished lots and homes and to operate multi-family projects as it work towards stabilization.
“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,” interim CEO Jeff Habersetzer commented.