Kirk Chapter 11 bankruptcy case converted to Chapter 7 for liquidation

By Caroline Salls

Pittsburgh, Oct. 7 - Kirk Corp.'s Chapter 11 bankruptcy case has been converted to Chapter 7 at the request of pre-bankruptcy lender agent JPMorgan Chase Bank, NA, according to a Wednesday filing with the U.S. Bankruptcy Court of the Northern District of Illinois.

Arguing for the change, JPMorgan said the company failed to confirm its plan of reorganization and has no cash to continue running the business.

"The [company's] dire circumstances prevent any outcome other than liquidation," the motion said.

A post-conversion status hearing is scheduled for Nov. 10.

Kirk, an employee-owned homebuilder based in Streamwood, Ill., filed for bankruptcy on May 12. Its Chapter 7 case number is 09-17236.

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