Reply #16: breaking news, Sacto. CA:Dunmore Homes files for bankruptcy protection [View All]

Seeking protection from creditors, Granite Bay home builder Dunmore Homes filed for bankruptcy late Thursday as it tries to restructure its tangled finances.
The move comes six weeks after Michael A. Kane, a Comstock Mortgage senior loan consultant in Sacramento, bought the firm from its second-generation owner Sid Dunmore. It's the first bankruptcy filing by a Sacramento-area home builder as dozens of firms struggle with a downturn in demand and prices for new homes.
Kane, who bought the company Sept. 26, was unavailable for comment Friday.
Dunmore executive John Slaughter said the bankruptcy filing followed "an aggressive move by one creditor to put themselves in a position ahead of others in a lawsuit.
"The only way to head that off was to file bankruptcy," said Slaughter, the firm's vice president of construction and operations. Slaughter declined to name the specific creditor.