Comstock Homebuilding Companies released their yearly report today and noted that they were forced to get restructuring for $30 million worth of cheap unsecured loans. The company also got a new cheap unsecured loan to handle new expenditures and advancements.
“Last year was a difficult year for our company and the home building industry by any measure. However, we are confident that the actions we took during 2007 improve our outlook for future periods,” said Christopher Clemente, Chairman and Chief Executive Officer. “We reduced debt by nearly one third while obtaining meaningful concessions from most of our lenders, we significantly reduced operating expenses and production costs, we enhanced liquidity by maximizing our tax refund, we reduced the burden of debt service by temporarily repositioning several projects as rental properties and selling certain other assets, and accelerated recognition of future period expenses where practical. We also negotiated a $15 million discount to our $30 million senior unsecured notes, revalued the assets we continue to hold through the recognition of impairments based on a 17% discount model and aggressively sold inventory of speculative units. While market conditions remain challenging we believe we have positioned Comstock for improving results in future periods.”
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