Tarragon, in Credit Crunch, Expresses Doubts on Future
Apartment and condominium builder Tarragon Corp. raised doubts about its ability to remain in business amid weak demand and an inability to raise new financing, in the latest fallout from the spreading credit crunch. It also disclosed that the wife of the company’s chief executive sold stock the day before Tarragon shares lost two-thirds of their value.
Tarragon’s shares plunged $1.88, or 67%, to 94 cents at 4 p.m. in Nasdaq Stock Market composite trading. The shares hit a 52-week high of $13.50 in February. The company — which owns 11,700 rental apartments, has 3,800 urban condos and houses under development and reported revenue of $545 million last year — said it is selling several assets to meet demands from creditors and will record a $125 million accounting charge. In a statement, the company blamed the “sudden and rapid deterioration of the real-estate credit markets” for its situation. It delayed its quarterly earnings report and postponed plans to spin off its home-building division.