Two more home builders have filed for Chapter 11 bankruptcy protection in the face of declining home sales and troubled credit markets.

Oakridge Homes LLC in California and M.W. Johnson Construction Inc., which builds homes in Minnesota, Wisconsin and Florida, both sought Chapter 11 protection Friday. The companies are two of many home builders in bankruptcy proceedings, including Levitt and Sons LLC and Tousa Inc.

M.W. Johnson blamed its bankruptcy on the "troubled credit markets and overbuilding" that have caused sales of new homes to decline. The home builder said that not only have these economic conditions forced it into bankruptcy, but they have drained the company of cash. M.W. Johnson is seeking court approval of a $1 million bankruptcy loan to help it liquidate its assets.

"Due to these market events, the debtors have operated at a loss for some time and have exhausted all available sources of operating capital," M.W. Johnson said in court papers. "The debtors have an immediate and irreparable need for financing to sustain operations in an effort to conduct an orderly liquidation of their assets for the benefit of creditors."

M.W. Johnson, of Lakeville, Minn., reported assets and debts in the range of $50 million to $100 million in its bankruptcy petition and said it has between 200 and 999 creditors. The home builder's affiliate, M.W. Johnson Construction of Florida Inc., also filed for bankruptcy.

Oakridge Homes didn't state in court papers whether it intends to reorganize or liquidate its assets during its stay in Chapter 11. An attorney for the company didn't return a call seeking comment by Tuesday afternoon. Oakridge, of Valencia, Calif., listed assets and debts in the range of $10 million to $50 million in its bankruptcy petition.

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