Marnella Homes Emerges from Chapter 11

11/18/2008

COURT APPROVES MARNELLA HOMES REEMERGENCE FROM CHAPTER 11 PROTECTIONS

Milwaukie, OR. – The United States Federal Bankruptcy court approved the order for Portland area builder Marnella Homes, lifting protections previously filed under the Chapter 11 Federal Bankruptcy code.

Upon filing for protection under Chapter 11 on April 15 of 2008, the company immediately began working with its creditors to launch its reorganization, thus allowing the company to restructure its overall capital position.

“We are thrilled to reemerge from Chapter 11 protection. We worked hard to craft a plan that was fair to our creditors and one that allowed us the flexibility to emerge as a strong and viable company. This is a true example of what Chapter 11 is meant to do,” said Tony Marnella, President and Chief Executive Officer of Marnella Homes.

Following Marnella Homes April filing, three other prominent area builders also filed for Chapter 11 protection (Legend Homes, Renaissance Homes and Pacific Lifestyle Homes). Marnella is the first Portland area builder to receive approval to resume business without Chapter 11 protection. “It’s certainly been a challenging time for all area builders, this is a very positive step for all of us,” said Marnella.

Marnella’s primary project is the “Volare’’” neighborhood located in Happy Valley, near the “Eagles Landing” golf course. The community has been a popular one for its location and price. Volare features European style town homes with floor plans that range from 1,430 to 2,118 square feet.

Marnella Homes is known for its focus on earth-friendly, sustainable living. In fact, Volare’s newly designed interiors and exteriors exceed the 2008 energy code and perform 30% to 50% above standard efficiency requirements.

Liquidation Sale is part of Reemergence

The courts approval to reemerge from Chapter 11 puts the company in a relatively strong viable financial position, one exception being the company’s 14 completed homes at ‘Volare’.

The company will be liquidating these 14 completed homes as part of a complete liquidation of its finished inventory. Buyers can view the homes by going to a special liquidation website, www.newhomesale.org. The 14 homes must be sold by January 15, 2009.

“We are comfortable with the sale. These are outstanding homes and buyers will certainly get great deals, but it will also give us the opportunity to complete the neighborhood and continue to be a strong builder for many years to come,” said
Marnella.

About Marnella Homes: Marnella Homes LLC develops and builds neighborhoods designed for Northwest living. With over 20 years of combined experience in construction, development and brokerage, owner Tony Marnella is committed to building the Portland metro area’s finest sustainable communities. Most recently Marnella produced the critically acclaimed, revitalizing Matthew Frank Condominiums in historic St. Johns. For more information about Marnella Homes, visit: www.marnellahomes.com.