Fulton Homes Presents More Generous Payback Offer to Lenders

Fulton Homes’ latest reorganization plan, which the Arizona-based builder filed last month with the U.S. Bankruptcy Court in Phoenix, calls for repaying in full the $164.7 million it owes its unsecured bank creditors over the next five years. That is a significant increase over the $85 million that Fulton Homes offered to pay back in either its initial plan or subsequent offers of $120 million and $125 million, which it made as its sales of homes and lots have improved. (In the first four months of 2010, the company closed 189 homes, which to that point outpaced its closing rate in 2009, when Fulton Homes ranked No. 49 on the BUILDER 100.) It remains to be seen, though, whether Fulton’s latest plan is enough to stave off court-ordered liquidation, which is what the builder’s lenders, led by Bank of America, have advocated in competing reorganization plans that they've submitted.

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