Neumann Homes Inc., the third- biggest U.S. homebuilder in bankruptcy, said creditors are seeking $286.9 million from the Chicago-area company.
Guaranty Bank, a unit of Austin, Texas-based building- products maker Temple-Inland Inc., tops Neumann’s list of creditors with a claim of $33.3 million, according to papers filed yesterday in U.S. Bankruptcy Court in Chicago.
Neumann, which builds suburban communities in Illinois, Colorado and Michigan, filed a Chapter 11 petition on Oct. 26, citing inadequate funding. Homebuilders are being strained by falling house prices amid defaults on subprime loans made to borrowers with limited or poor credit. Projects dropped 50 percent to 80 percent in Chicago, Denver and Detroit, it said.
The company, based in Warrenville, Illinois, listed secured claims of $151.1 million, unsecured claims of $134.1 million and assets of $291.8 million in its latest filing. Neumann’s original petition didn’t specify total assets or debt.
In November, Fort Lauderdale, Florida-based Levitt and Sons LLC became the biggest builder in bankruptcy, owing unsecured creditors $340.6 million. Kara Homes Inc., based in East Brunswick, New Jersey, sought bankruptcy in October, listing assets of $350 million and debts of $297 million.
Neumann this month won bankruptcy court approval to terminate contracts on homes that it never started building, and return about $875,700 in deposits to customers. The court also approved Neumann’s bid to finish homes that were under construction at the time of the filing.
Combined Claims Two Bank of America Corp. units hold combined claims of $32.7 million, while IndyMac Bank, based in Pasadena, California, has a claim of $29.1 million. Real estate lender GMAC LLC holds a $19.5 million claim, while Cole Taylor Bank, a unit of Taylor Capital Group Inc., holds a $14.4 million claim.
Neumann’s lawyers have asked U.S. Bankruptcy Judge Eugene R.
Wedoff for permission to reject the lease on its corporate headquarters and to sell a Denver-based unit, Precision Framing Systems LLC.
The company is fighting attempts by an ad hoc group of secured trade creditors to form an official committee for representation in the case. It also listed dozens of pending lawsuits against the company for breach of contract and other claims from plumbing, flooring and roofing contractors.
Dunmore Homes Inc., based in Granite Bay, California, filed for bankruptcy in November, listing debt of $250.3 million on assets of $280.6 million.
George Panagakis, Neumann’s lawyer with the law firm Skadden Arps, didn’t immediately return a call seeking comment.
