Neumann Homes looks to recover $3.23 million in payments under lawsuit

By Caroline Salls

Pittsburgh, Nov. 3 - Neumann Homes, Inc. filed a lawsuit against Middlesboro at Oakhurst, LLC in an attempt to recover $3.23 million of allegedly fraudulent transfers, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

Neumann said it made $1.88 million in option agreement payments to Middlesboro, as well as $1.35 million in settlement payments.

However, the company said it was insolvent when it made the payments, and it did not receive "reasonably equivalent value" in exchange for the payments.

Neumann Homes, a Warrenville, Ill.-based homebuilder, filed for bankruptcy on Nov. 1, 2007. Its Chapter 11 case number is 07-20412.

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