Kirk seeks court approval to sell interest, property for $1.5 million

By Caroline Salls

Pittsburgh, July 29 - The Kirk Corp.'s Chapter 7 trustee requested court approval to sell the company's 100% interest in Rockwell Utilities, LLC and parcels of property owned by Rockwell Place, LLC for a total of $1.5 million to Rockwell Investments, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The purchase price for the Rockwell Utilities interest is $500,000, and the purchase price for the property is $1 million.

Kirk said it owns a 100% membership interest in Rockwell Utilities, a private utility that services residences in Lakemoor, Ill. Rockwell Place, a wholly owned subsidiary of Kirk, owns 77 lots in The Townes of Rockwell Place subdivision, which is also located in Lakemoor.

According to the motion, Rockwell Investments' principal is Kirk's former president and chief executive officer John Carroll.

Trustee Richard M. Fogel said he will solicit competing bids for the membership interest and the property. Opening bids at auction must exceed the proposed purchase price by 5%. Subsequent bids on the membership interest must be made in increments of at least $10,000, while subsequent bids on the property must be in increments of $25,000.

If Rockwell Investments is not the high bidder for either the interest or the land at auction, Kirk will pay it a 2.5% break-up fee for each sale.

A hearing is scheduled for Aug. 10.

Kirk, an employee-owned homebuilder based in Streamwood, Ill., filed for bankruptcy on May 12, 2009. Its Chapter 7 case number is 09-17236.

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