Standard Pacific Corp. will not file Chapter 11 bankruptcy protection according to CEO Stephen J. Scarborough. In fact, Scarborough called the recent mumblings about the builder’s future as “speculation” on Tuesday at the JPMorgan Homebuilding and Building Products Conference in Las Vegas.
“There has been no effort on our part for filing bankruptcy,” Scarborough said at a presentation. “We have a good record of working with our banks and a plan in place to generate and preserve cash.”
With stocks hovering daily near the $2-a-share range, the builder may have to repeat Scarborough’s statement multiple times in the coming weeks. Shares of the home builder are down 90 percent for the year, third-quarter earnings posted a $199.7 million dollar loss, and the company’s debt load is nearly $2 billion.
Despite the swirling rumors, the builder says it is focused on managing its starts, curtailing expenditures, and restricting land development. “We think the worse is behind us,” Scarborough noted.
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