(Updated June 27, 2007 – Debtors have filed a Motion to Convert to Chapter 7)
Meyer-Sutton Homes, Inc. and Meyer-Sutton Land Acquisition Inc. filed Chapter 11 petitions in the Newnan Division of the Northern District of Georgia on June 4, 2007. Case Nos. 07-11307 and 07-3006.
From the AP –
WASHINGTON — Georgia builder Meyer-Sutton Homes Inc. filed for protection from creditors Monday in the U.S. Bankruptcy Court in Newnan, Ga., the result of a "sudden and dramatic" decline in business.
Meyer-Sutton, of Fayetteville, Ga., listed total assets of about $44 million and debts of $40 million in its bankruptcy petition. Meyer-Sutton Homes and affiliate Meyer-Sutton Land Acquisition Inc. filed for Chapter 11 protection. Both companies are owned by James W. Buchanan.
"The housing market has suffered a dramatic decline in demand with the result problems of excess inventory and compressed profit margins," Buchanan said in court papers.
According to its bankruptcy filing, the company has cut new construction starts to two per month from 25 per month.
"The decrease in construction activity, along with a decrease in closed sales" forced Buchanan to put his company into Chapter 11, he said in court filings.
Meyer-Sutton owes its bank lenders about $26.5 million and its trade creditors $2.8 million. Atlanta’s Stock Building Supply, owed $1.3 million, is its biggest unsecured creditor.
Founded in 1994, Meyer-Sutton Homes had $36.2 million in revenue last year. The land acquisition company brought in an additional $3.5 million. … Meyer-Sutton intends to remain in business during its reorganization.