Hedge Fund To Help Lift Kara Homes From Chapter 11

Law360, New York (June 29, 2007, 12:00 AM EDT) -- Bankrupt homebuilder Kara Homes Inc. filed an amended plan of reorganization Wednesday, paving the way for the company to emerge from Chapter 11 protection with a cash infusion from hedge fund Plainfield Specialty Holdings II Inc.

The plan, filed in the U.S. Bankruptcy Court for the District of New Jersey, revealed that Plainfield will pay $10 million through a development company it owns, Maplewood Home Builders LLC. In exchange for the cash infusion, Maplewood will receive 100% of reorganized Kara stock and 90% indirect ownership of...
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