Neumann Homes disclosure statement approved, conversion motion dropped

By Lisa Kerner

Charlotte, N.C., Dec. 11 - Neumann Homes, Inc.'s disclosure statement was approved, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The motion to convert the company's Chapter 11 bankruptcy case to Chapter 7 was withdrawn, the court filing said.

As previously reported, creditor IndyMac Ventures, LLC asked the court to convert the company's bankruptcy case and said creditors are likely to receive more money in Chapter 7 than under the company's proposed plan of liquidation.

The creditor also said it believes that the costs associated with the post-confirmation governance structure contemplated by the liquidation plan will be exceedingly high.

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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