Arundel builder seeking Chapter 11 protection Unfinished home at expo was called 'Dream in Progress'

November 03, 1995|By Lorraine Mirabella | Lorraine Mirabella,SUN STAFF

Beset with lawsuits and mounting bills, an Anne Arundel County homebuilder that only partially finished its "dream home" model in this year's annual builders showcase has filed for bankruptcy.

C.C. Building Corp., which has built homes in Maryland and Ohio, sought Chapter 11 protection from creditors Oct. 26 in U.S. Bankruptcy Court in Baltimore. Records show debts in excess of $7 million, with assets of $71,225.

The company is building single-family homes in the $142,000-to- $213,000 range in Baltimore and Anne Arundel counties.

Mark Collett, the company's president, was en route to Ohio yesterday to visit one of the builder's subdivisions and was unavailable for comment, said his attorney, Douglas R. Thomas.

Sales have slid each year since 1993, when annual home sales reached $6.4 million, a financial affairs statement shows. Sales in 1995 so far have totaled $2.4 million, the statement says.

The builder owes $5.1 million in construction loans to several banks and mortgage companies in Maryland and Ohio, as well as another $1.8 million in unsecured claims to more than 200 creditors. Those include numerous construction companies and suppliers of carpet, lumber and electrical goods. The company also has found itself a defendant in some 80 civil cases in Maryland and Ohio.

While preliminary statistics show that new home sales for the region improved in July, August and September compared with last year, many builders still are struggling, said Harvey N. Singer, senior vice president of Legg Mason Realty Group.

"The region is selling more homes, but more builders are chasing somewhat higher volume, not enough to compensate for the number of new builders and number of new subdivisions," Mr. Singer said. "Any given builder is not doing that much volume on any given project."

C.C. Building has single-family homes under construction in at least three subdivisions in the Baltimore region, according to Legg Mason Realty, which tracks construction in subdivisions of 20 homes or more. In Seven Oaks, one of western Anne Arundel County's three large planned developments, the company has sold 49 of its planned 54 homes, with 42 built since June 1992.

During the past year, the builder has put up six of 25 houses planned for the Village of Painters Mill and sold one house in

Owings Meadows in Owings Mills, where it plans 27. The company also is building in Frederick, according to Legg Mason.

C.C. Building Corp. recently took part in the second annual Home Builders Association of Maryland Dream Homes expo. C.C. Building Corp. never finished its model, calling it a "Dream in Progress" where visitors could see exposed plumbing and electrical components, roof trusses, floor joists and beams.

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