Neumann Homes Plan Promises Creditors Full Recovery

Law360, New York (December 14, 2009, 4:54 PM EST) -- Defunct Chicago homebuilding company Neumann Homes Inc. has filed a liquidation plan that would satisfy secured claims in full while providing minimal recovery to unsecured creditors and none to equity holders.

The plan, filed along with a disclosure statement on Friday in the U.S. Bankruptcy Court for the Northern District of Illinois, calls for the substantive consolidation of all bankrupt Neumann affiliates and the appointment of a liquidation trustee to oversee the distribution of the proceeds from the liquidation.

The unimpaired secured creditors include Bank of...
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