Harbor Custom Development files for Chapter 11 bankruptcy protection with $172.53 million in debt

By Sarah Lizee

Olympia, Wash., Dec. 11 – Harbor Custom Development, Inc. filed Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the Western District of Washington.

The company said in a press release that it plans to pursue an orderly wind down or restructuring of its business.

Harbor Custom Development said it has filed several first-day motions with the bankruptcy court that will allow it to continue operating in the ordinary course of business while it prepares a plan of reorganization to ensure that it can maximize value for the benefit of its creditors.

The company will continue to market and sell finished lots and homes and to operate multi-family projects as they work toward stabilization.

“The Chapter 11 cases will provide the company with time and breathing-room needed to market and sell its real estate assets and right-size operations for the benefit of the company’s creditors and stakeholders,” Jeff Habersetzer, interim chief executive officer of the company, said in the release.

In its petition, the company reported $223.98 million in assets and $172.53 million in liabilities.

The company is represented by Cairncross & Hemplemann, PS.

Harbor Custom Development is a real estate development company located in Tacoma, Wash. The Chapter 11 case number is 23-42180.

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