Builder Kimball Hill Begins Winding Down Operation

Rolling Meadows, IL, Dec. 2, 2008--Kimball Hill Homes said it has suspended new construction starts and is winding down its operations as it tries to find a buyer for the business.

The company, which builds in Illinois, Texas, Nevada, and California, also filed its Chapter 11 plan.

"We deeply regret the necessity of today's decision, but given the current housing and financial market conditions we are simply unable to conduct normal operations while the Company continues its sale efforts," said CEO Ken Love.

"We believe it is appropriate to begin the wind-down process now to ensure the smoothest transition possible for our employees, our homebuyers, the communities we serve, as well as our creditors."

The company said that it continues to have access to more than $35 million from its debtor-in-possession financing facility, which along with home sale proceeds will provide more than ample liquidity to fund payments to contractors and trade partners and meet employee obligations throughout the sale and wind-down process.