Harbor Custom Development (NASDAQ: HDRB) and its wholly owned subsidiaries have announced that they are filing for protection under Chapter 11 of the U.S. Bankruptcy Code. The company plans to either pursue an orderly wind down or restructure its business.
After this news broke, Harbor Custom Development's shares experienced a sharp decline of 28%, reaching a low of 49 cents. Over the past year, the stock has seen a significant decrease of 93%.
Despite these challenges, the company is taking steps to ensure its continued operations. Harbor Custom Development has submitted several customary first day motions to the bankruptcy court, which will allow it to function normally while developing a comprehensive plan for its reorganization. This approach aims to maximize value for the benefit of its creditors.
During this process, Harbor Custom Development remains committed to its core activities. The company will continue marketing and selling finished lots and homes, as well as operating its multi-family projects. This strategic move reflects their dedication to stabilizing the company amidst these difficult circumstances.
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