Orleans Homebuilders Inc. has filed for Chapter 11 bankruptcy protection.

The regional building company, based in Bensalem, Pennsylvania, was hit hard by the recession. Orleans borrowed $311 million on a $350 million line of credit that was set to mature on February 12. However, the company was unable to sign on all the 17 financial institutions, failing to extend or replace the funding.

The company has managed to arrange $40 million in debtor-in-possesion financing, and is seeking court approval of the plan. A statement released by the company said existing customer deposits are most likely protected in segregated escrow accounts and are not affected by the Chapter 11 filing.

Residential revenue for the company dropped from almost $1 billion in 2006 to about $322 million in 2009.

If you are a business owner and are struggling to make regular payments on your debts, you may wish to consider filing for bankruptcy to restructure your business. For more information on bankruptcy, please contact a Boston bankruptcy lawyer of Joshua Spirn & Associates by calling 800-975-5346.