PACIFIC LIFESTYLE HOMES RESUMES CONSTRUCTION

Court Ruling Paves the Way for Construction at Seven Communities in Oregon and Washington.

VANCOUVER, WA – An agreement reached Tuesday afternoon between Pacific Lifestyle Homes, its lenders, and the court will allow one of the Portland area’s largest homebuilders to resume construction after a six month hiatus.

Pacific Lifestyle Homes filed for Chapter 11 reorganization in October of 2008. Since that time, the company has focused on selling existing inventory, successfully selling more than 50 homes through a new home liquidation sale that began last fall.

“This is huge step in our reorganization,” said President and CEO Kevin Wann. “This ruling will inject working capital into the company, allowing us to replenish our home inventory at various communities in Washington and Oregon.”

Pacific Lifestyle Homes is headquartered in Vancouver, Washington. The company was founded in 1996 and is owned by Kevin Wann. From 2004 to 2008, the company closed 1,292 homes, and in 2008, the company sold 135 homes.

Homebuilding will begin immediately in Pacific Lifestyle Home’s communities in Woodland, Ridgefield, Vancouver, and Washougal in Washington and Happy Valley, Lafayette, and Salem in Oregon.

Company Sells 50 Homes in Liquidation Sale

Heeding the advice of reorganization consultants, Pacific Lifestyle Homes liquidated its inventory of 2008 built homes in a sale that concluded March 31. The sale netted 50 home sales, bringing inventory back in line with acceptable ratios.

The company will liquidate several homes that have been completed since the start of the previous liquidation as part of a multi builder sale that will take place sometime in the next few weeks.

The homes will once again be sold through liquidation company NewHomeSale.Org. The inventory for the next sale is expected to be added in the next few weeks.