Kara Homes Settles With Bond Companies

Law360, New York (September 10, 2007, 12:00 AM EDT) -- Bankrupt homebuilder Kara Homes Inc. asked the court on Friday to grant a settlement between it and its deposit bonding companies, debtor in lending and plan sponsor that would take it one step closer to exiting Chapter 11.

The settlement agreement was made between Kara Homes and three bond posters, Bond Safeguard Insurance Co., Lexon Insurance Co. and Westchester Fire Insurance Co., as well as its DIP lender Plainfield Specialty Holdings II Inc. and Chapter 11 plan sponsor Maplewood Homebuilders LLC.

Deposit bonding companies help guarantee...
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