Kara Homes Modifies Reorganization, Draws Criticism

Law360, New York (August 30, 2007, 12:00 AM EDT) -- Kara Homes Inc. has amended its reorganization plan to consolidate an accounting affiliate of the bankrupt homebuilder in a move that a building material supplier suggested may be a way to avoid payment claims.

Kara Homes filed a document in a New Jersey bankruptcy court on Wednesday to modify its first amended master plan of reorganization to consolidate Kara Service Co. LLC with the home builder upon confirmation of a reorganization plan.

“Kara Service provided accounting and check writing services to Kara Homes Inc. Kara Service...
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