Harbor Custom Development Files For Bankruptcy Protection; Stock Down

(RTTNews) - Harbor Custom Development Inc. (HCDI) has voluntarily filed for protection under Chapter 11 of the United States Bankruptcy Code in the Western District of Washington at Tacoma to pursue an orderly wind down or restructuring of its business, the real estate company said in a statement on Monday.

HCDI closed Monday's regular trading at $0.68 down $0.13 or 16.13%. In the after-hours trading the stock further dropped $0.26 or 37.52%.

The company has filed a number of customary 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.

Harbor Custom Development noted that it will continue to market and sell finished lots and homes and to operate multi-family projects as they work towards stabilization.