The housing market's disaster du jour for Friday was builder Standard Pacific, whose shares plunged 17.6% on news it had retained restructuring and bankruptcy specialist Miller Buckfire as a financial adviser. The implication that the builder might be considering a bankruptcy filing was not lost on investors ... Friday's leg down was kindled by the subscription website Debtwire, which reported that Standard Pacific hired Miller Buckfire. The article cited unnamed sources.The New York Stock Exhange, in a statement Friday, said it had contacted the builder after "unusual market activity in the company's stock." Standard Pacific cited company policy of not commenting on market rumors, according to the Exchange. Disclosure: At the time this post was published, the author held no positions in SPF.
Is Standard Pacific Contemplating Bankruptcy?
Via Forbes' MarketScan, news that homebuilder Standard Pacific may be in very big trouble: