"As previously announced we are working to restructure a significant
portion of our debt to ensure our ability to survive what has turned
out to be the worst cyclical market downturn in a generation. We are
pleased with the results of our negotiation with BB&T and consider
this an important first step in our plan to reposition Comstock to
meet current market challenges," said Christopher Clemente,
Comstock's Chairman and Chief Executive Officer. "We continue to
focus on similar negotiations with certain other lenders and remain
optimistic regarding the outcome of those negotiations."
It is expected that on September 2, 2008 BB&T will complete the
foreclosure process on select lots at Maristone, James Road, Wyngate
and Glen Ivy, all in the Atlanta, Georgia market and that on or
before September 30, 2008, BB&T will complete the foreclose process
on the collateral securing the Company's debt at two projects in
Virginia, Barrington Park and Woodlands of Round Hill. The Company
announced that in anticipation of this agreement it had recorded
impairment charges related to the BB&T collateral in the quarter
ending June 30, 2008 and as a result the Company does not anticipate
any material future write-offs as a result of the Agreement or the
foreclosures.
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies, Inc. is a
publically traded, diversified real estate development firm with a
focus on affordably priced for-sale residential products. Comstock
builds and markets single-family homes, townhouses, mid-rise
condominiums, high-rise condominiums, mixed-use urban communities and
active adult communities. The company currently markets its products
under the Comstock Homes brand in the Washington, D.C.; Raleigh,
North Carolina; and Atlanta, Georgia metropolitan areas. Comstock
Homebuilding Companies Inc. trades on Nasdaq under the symbol CHCI.
For more information on the Company or it projects please visit
www.comstockhomebuilding.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties that may cause actual
future results to differ materially from those projected or
contemplated in the forward-looking statements. Additional
information concerning these and other important risks and
uncertainties can be found under the heading "Risk Factors" in the
Company's most recent form 10-K, as filed with the Securities and
Exchange Commission on March 24, 2008. Comstock specifically disclaims
any obligation to update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise.
Contact:
Bruce Labovitz
Email Contact
703.230.1131
SOURCE: Comstock Homebuilding Companies, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=D1BC733BCAC88870