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Brian
Posts:2210
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| 08/28/2008 3:56 PM |
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Carlsbad builder Barratt American could lose ownership of its City Square project in Escondido ---- a development that hints at a financial crisis for Barratt and is a small part of a contentious fight between home builders and lenders across the country.
Four of the City Square town houses, brand-new properties at Second Avenue and Centre City Parkway, will be sold by a court-appointed receiver after the lender, Bank of America, filed a notice of default, the first step in the foreclosure process. But the troubles at City Square speak of larger problems for the North County builder.
"I can't say we'll maintain ownership of City Square. What I can say is, Barratt American will survive," said Michael Pattinson, president of Barratt, in a phone interview from London, where he was on a business trip.
"Barratt is going to survive this, but obviously we're going to be a greatly downsized company. And we'll be lying low for a while, because 2009 is not going to be a whole lot better than 2008."
Pattinson said his company has laid off 100 of its roughly 130 employees.
The cash-strapped builder is struggling to pay its bills. Since November 2007, 80 civil lawsuits have been filed against the builder, mostly from subcontractors for unpaid bills, according to court records.
NC Times Article
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NCgirl
Posts:206
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| 08/30/2008 7:34 AM |
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I had been wondering what is going on with Quail Point in Encinitas. They built the foundations for the homes, had a sales office set up ..and now it's all abandoned , kind of an eyesore.
They still have signs up in La Costa for some new town homes "coming fall of 2008" |
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