Kimball Hill Inc., one of the largest homebuilders in the Chicago region has received a reprieve on loans due to lenders. A group of lenders has agreed to give the company until at least March to pay back some of the more than $500 million the company owes.

The amount due in March would be about $10 million to keep creditors from turning to the courts to recover loans made to the company. These creditors are often the first to receive payment after a bankruptcy.

However, creditors may be concerned about the effects of several bankrupties in the housing sector and an increase in foreclosures around the region that could lower the value of assets owned by Kimball Hill. For now, creditors seem content to allow the company to get back on its feet.

Kimball Hill has expanded across the nation. As a result has been hit hard by the downturn in sales not just in Chicago, but particularly in markets such as California and Florida, which were among the hardest hit by the downturn in the real estate market.

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This entry was posted on Wednesday, January 30th, 2008 at 3:51 pm and is filed under Evanston Real Estate(t) . You can leave a response.