Orleans bid procedures hearing postponed to consider standalone plan

By Caroline Salls

Pittsburgh, May 4 - Orleans Homebuilders, Inc. hearing on establishment of bid procedures for the sale of substantially all of its assets has been adjourned to May 21 from May 4, according to a company news release.

Orleans said stalking horse bidder NVR, Inc. has agreed to the adjournment, which is designed to give the company more time to consider other options, including ongoing discussions with its senior secured lender group, the official committee of unsecured creditors and other constituencies regarding a standalone plan of reorganization.

"The company has been in active dialogue with a number of parties regarding strategic options," Orleans chief restructuring officer Mitchell B. Arden said in the release.

"The conversations have been productive, and the two-week adjournment is designed to provide additional time to consider these options.

"Ultimately, a stand-alone plan of reorganization that recognizes the company's going concern value may represent a better outcome for the company and its customers, contractors/suppliers, employees and lenders."

Orleans Homebuilders, a Bensalem, Pa.-based developer, builder and marketer of single-family homes, townhouses and condominiums, filed for bankruptcy on March 1 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-10684.

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