Alvarez & Marsal forms group to help distressed homebuilders

By Caroline Salls

Pittsburgh, Dec. 10 - Alvarez & Marsal has formed a group dedicated to serving the needs of the homebuilding industry as an increasing number of public and private homebuilders face liquidity shortfalls in the wake of the subprime mortgage crisis, credit crunch and slowdown in housing demand, according to a news release.

"The number of distressed homebuilders continues to rise, as companies struggle to deal with the growing divergence between demand and supply and face liquidity shortfalls as asset values drop below debt levels in many instances," Alvarez & Marsal managing director Andrew Hede said in the release.

"More and more homebuilding companies are pursuing financial and operational restructurings and it's likely that additional pain may be in store before the industry hits bottom."

Led by Hede and managing director Scott Brubaker, the firm said the group uses expertise from multiple service offerings, including Restructuring and Performance Improvement, Real Estate Advisory, Transaction Advisory and Dispute Analysis & Forensics.

"Alvarez & Marsal is already working with a number of homebuilding industry clients across the country," Brubaker said in the release.

"Some have been forced into the situation by creditors; others have taken an honest assessment of the situation and have decided to be proactive to try to stop the bleeding and put the company in the best possible position to ride out the storm.

"Our goal is also to best position companies to prosper when the market recovers."

Alvarez & Marsal is an independent global professional services firm specializing in turnarounds in the private and public sectors.

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