By Mary Ellen Podmolik |
Orleans Homebuilders Inc., a Pa.-based homebuilder with five Illinois
communities, filed for Chapter 11 bankruptcy protection in U.S.
Bankruptcy Court in Wilmington, De.
 
The company said its
bankruptcy filing was needed because a $350 million senior secured
revolving credit loan agreement had matured and it was unable to reach
an agreement to extend the credit facility with 100 percent of its
17-member bank group or obtain a replacement facility.

Orleans said it had reached, pending court approval, an agreement for $40 million in debtor-in-possession financing and there would be no interruption in the operation of its 11 divisions in eight states. Orleans has suburban Chicago developments in Lake Villa, Aurora, Schaumburg, Bolingbrook and Woodridge.

The filing does not include its mortgage services subsidiary, Alambry Funding, Inc., which provides mortgage brokerage services for customers.