Stearns and Joint Venture and Preferred Partner Entities to Continue Operating as Normal During Financial Restructuring Process
On July 9, 2019, Stearns Holdings announced that Stearns and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. This process is expected to significantly reduce the Company’s outstanding debt, continue Stearns’ operations and better position the Company for long-term success.
Stearns is operating as normal and its employees are focused on providing customers the high-quality service they expect from the Company. We remain firmly committed to our mission of helping homebuyers find the best loans for their current and future needs. The joint venture and preferred partner entities to which Stearns is a party are not subject to the Chapter 11 filings and continue to operate in the ordinary course of business.
Stearns has filed a number of customary motions seeking court authorization to continue to support its business operations during the court-supervised process, including the continued payment of employee wages, salaries and health benefits as well as the continuation of all programs in support of the Company’s customers and business partners. The Company expects to receive Court approval for these requests. The Company intends to pay suppliers and vendors in full under normal terms for goods and services provided on or after the Chapter 11 filing date.