Why Is Harbor Custom Development (HCDI) Stock Down 34% Today?


  • Harbor Custom Development (HCDI) stock is falling on Tuesday following a bankruptcy filing.
  • The company is considering a reorganization plan during this time.
  • It may also sell assets to the benefit of creditors.
HCDI Stock - Why Is Harbor Custom Development (HCDI) Stock Down 34% Today?

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Harbor Custom Development (NASDAQ:HCDI) stock is taking a beating on Tuesday after the real estate development company filed for Chapter 11 bankruptcy protection.

According to a press release from Harbor Custom Development, this bankruptcy filing was made voluntarily as the company seeks to either restructure its business or wind down operations. The company has already made the necessary first-day motions to continue normal operations throughout the bankruptcy process.

Harbor Custom Development notes that it is preparing a Plan of Reorganization that will allow it to maximize value for creditors. This will allow it to continue to sell finished homes and lots while also operating multi-family projects.

Jeff Habersetzer, interim CEO of Harbor Custom Development, said the following about the bankruptcy filing:

“The Chapter 11 cases will provide the Company with time and breathing-room needed to market and sell its real estate assets and right-size operations for the benefit of the Company’s creditors and stakeholders.”

HCDI Stock Movement Today

Considering the bankruptcy filing, investors won’t be surprised to see that HCDI stock is falling hard today. That has the company’s shares down 33.6% as of Tuesday morning. Traders will also note that the stock is down 92.6% year-to-date as of Monday’s close.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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