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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.