Neumann Homes out of bankruptcy as liquidation plan takes effect

By Caroline Salls

Pittsburgh, Aug. 23 - Neumann Homes, Inc. emerged from Chapter 11 bankruptcy when its plan of liquidation took effect on Friday, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The plan was initially confirmed on Feb. 18, 2010. A supplemental confirmation order was entered on April 20 after some changes were made to address Bank of America objections related to the company's Sky Ranch debtor.

Treatment of creditors will include:

• Other secured claims will be reinstated;

• Holders of administrative claims, priority tax claims and non-tax priority claims will be paid in full in cash;

• Bank of America secured claims will remain unaltered, and holders will receive the collateral securing their claims;

• Holders of general unsecured claims will receive a share of liquidation trust plan distribution property; and

• Holders of old equity interests, affiliate interests and subordinated claims will receive no distribution.

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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