Neumann Homes seeks OK to transfer property to prepetition lenders

By Reshmi Basu

New York, Nov. 29 - Neumann Homes, Inc. asked for court approval to transfer some of its developed properties to prepetition lenders, according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

According to the court papers, the homebuilder have been in negotiation with certain lenders regarding strategic and financial alternatives regarding undeveloped land, which make up the biggest portion of the lenders' collateral.

The lenders, however, were unwilling to advance more money to Neumann Homes.

Under the motion, Neumann would transfer the title of participating developed properties to certain lenders.

As a result of the title transfer, Neumann may receive an immediate reduction of debt and the assumption of certain liabilities by the lenders. The homebuilder will also see a further reduction of debt in the event that there are excess proceeds from the disposal of the properties.

In addition, Neumann Homes will consider competing proposals as long as alternative offers are received by Dec. 8.

A hearing is scheduled for Dec. 11.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.