Neumann Homes to sell Illinois building-component business for $2.5 million

By Rebecca Melvin

New York, Feb. 11 - Neumann Homes Inc. will seek court approval to sell the Illinois business of Precision Framing Systems LLC to Masco Corp. affiliate Builder Services Group Inc. for $2.5 million plus the sale of inventory estimated at $550,000, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

Precision Framing is a specialized component manufacturer and building-material distribution business that makes such things as manufactured floor decks. The Denver-based portion of this business was sold in November.

The proceeds will be used to pay off about $1.9 million in secured note obligations owed to Banc of America Leasing & Capital LLC, which financed the purchase of certain assets, as well as a $62,500 commission owed to business brokerage and marketing firm Schaffer Associates LLC, according to the filing.

Neumann Homes asked that because it had not received a reasonable competing offer for the assets that an auction or bid procedures not be required.

A hearing on approval of the sale is set for Feb. 20.

Neumann Homes, a Warrenville, Ill.-based homebuilder, filed for bankruptcy on Nov. 1. Its Chapter 11 case number is 07-20412.

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