Bankrupt Homebuilder Neumann Homes asked a judge to approve the $9 million sale of land north of Chicago to Cole Taylor Bank.
The lender, a unit of Taylor Capital Group Inc., agreed to reduce its $14.4 million claim in exchange for part of the 600- acre Clublands property in Antioch, according to papers filed Nov. 22 in U.S. Bankruptcy Court in Chicago.
U.S. Bankruptcy Judge Eugene Wedoff agreed to hold an emergency hearing to consider the sale. Cole Taylor, based in Rosemont, was Neumann's lender for the development, and the only interested buyer, the builder said.
Neumann, a 24-year-old company that built 12,000 homes in Illinois, Wisconsin, Colorado and Michigan, filed for bankruptcy in October 2007, citing inadequate funding and weakening of the U.S. housing market.
The Clublands assets include proceeds from a $13.8 million tax bond issued by Antioch for streets, sidewalks and other improvements, as well as three bonds totaling $15.6 million issued by Fidelity & Deposit Co. of Maryland, court records show. Antioch said in July that Neumann had defaulted on its obligations to finish public improvements.
Neumann has secured claims of $151.1 million, unsecured claims of $134.1 million and assets of $291.8 million, court papers show.
George Panagakis, Neumann's lawyer with the law firm Skadden, Arps, Slate, Meagher & Flom, didn't immediately return a call seeking comment.
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Showing posts with label neumann homes chapter 11. Show all posts
Showing posts with label neumann homes chapter 11. Show all posts
Wednesday, November 26, 2008
Thursday, October 25, 2007
Neumann Homes of (Chicago, Denver, Detroit, Wisconsin) Files Bankruptcy
Neumann Homes Inc., a large homebuilder in Chicago, Denver, Detroit and Wisconsin, is filing for Chapter 11 bankruptcy protection because of the slump in housing markets.
The company said late Monday that it had been unable to secure adequate funding to operate its business and had closed its sales, production and customer service offices. It said it has laid off most of its employees, but did not give a number.
Chief Executive Kenneth Neumann blamed the situation on a "significant downturn" in housing markets in Detroit, Chicago and Denver.
"Even after the significant help we have received from our lenders this year, the company can no longer weather this storm," he said in a statement.
Neumann Homes expanded to the Detroit area in 2005 by buying Tadian Homes, an acquisition that made it the 35th-largest U.S. homebuilder at the time. But that market has been hard-hit since by auto industry layoffs, and the company said the move has cost it more than $60 million.
This year, the housing market nationwide has been battered by a steep drop-off in both price and demand.
Steven Hovany, president of the consulting firm Strategy Planning Associates Inc., said Neumann fell victim to an overaggressive and mistimed expansion into new markets. "As a result, they've got a lot of projects and few sales," he said.
Neumann has 15 active developments in the Chicago area, mostly in distant suburbs such as Antioch, Grayslake and Oswego.
The company said late Monday that it had been unable to secure adequate funding to operate its business and had closed its sales, production and customer service offices. It said it has laid off most of its employees, but did not give a number.
Chief Executive Kenneth Neumann blamed the situation on a "significant downturn" in housing markets in Detroit, Chicago and Denver.
"Even after the significant help we have received from our lenders this year, the company can no longer weather this storm," he said in a statement.
Neumann Homes expanded to the Detroit area in 2005 by buying Tadian Homes, an acquisition that made it the 35th-largest U.S. homebuilder at the time. But that market has been hard-hit since by auto industry layoffs, and the company said the move has cost it more than $60 million.
This year, the housing market nationwide has been battered by a steep drop-off in both price and demand.
Steven Hovany, president of the consulting firm Strategy Planning Associates Inc., said Neumann fell victim to an overaggressive and mistimed expansion into new markets. "As a result, they've got a lot of projects and few sales," he said.
Neumann has 15 active developments in the Chicago area, mostly in distant suburbs such as Antioch, Grayslake and Oswego.
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