Kimball Hill files chapter 11 (Sugar Grove, Time: debts, jobs, new home)

[dblsae]

Kimball Hill anounced today that they are filing for Chapter 11. Does anybody outthere have any thoughts on this?

[Jeff Hill]

I don't think it was anything more than a debt restructure. I believe they will still have normal business operations.

[sbd78]

I just read an article in the Sun Times that says they have $60 million in cash they are going to use to continue delivering new homes. Hopefully this is in fact the case, when Neumann filed for chapter 11 operations halted. Hopefully Kimball Hill will be able to get through this more gracefully than Neumann has, the Neumann bankruptcy has been a mess. (And still is!)

[sgresident]

I think that this is a different situation than the neumann homes, as this is for re-organization, not liquidation. I will keep my ears open here in sugar grove!

[dblsae]

Yes, I hope they are able to carry on like they say they will. The article I read says they are putting a restructuring plan together that will be finalized in the next 90 days. Hopefully they can weather this storm so that their workers can keep their jobs and so the trades stay busy. This might sound selfish but also for the customers such as my self who want to see their house finished along with their community completed. I wish them the best, as they have been wonderful to work with, I just wish there was something more I could do personally.

[Lonely Settler]

My parents have a house currently under construction at Settler's Ridge (my wife and I closed on our house out here last year). According to what they were told all attempts will be made to complete construction. However, they were also told what steps to take to get back their earnest money if necessary. As I understand it it all depends on the ruling of the bankruptcy court today.

On a purely selfish note, I hope they (Kimball Hill, not my parents) are able to weather the storm. Our house is the only one on our block and (as my user name suggests) it's quite lonely out here. I would like to have some neighbors eventually.

[chet everett]

Originally Posted by Lonely Settler

My parents have a house currently under construction at Settler's Ridge (my wife and I closed on our house out here last year). According to what they were told all attempts will be made to complete construction. However, they were also told what steps to take to get back their earnest money if necessary. As I understand it it all depends on the ruling of the bankruptcy court today.

On a purely selfish note, I hope they (Kimball Hill, not my parents) are able to weather the storm. Our house is the only one on our block and (as my user name suggests) it's quite lonely out here. I would like to have some neighbors eventually.

I have known quite a few people over the years that moved into new developments at all price points and were 'lonely' out in the phase that filled in last. As long as you don't NEED to sell for a long time you should be OK, but even still it makes sense not to "over improve" your house inside or out. It will make sense to get some trees in the ground ASAP and make sure the weeds from the vacant areas don't invade your lawn. You'll also need to make sure that the interior of your home looks 'finished' in a polished and up to date way, but it would be foolish to buy anything that will be too trendy or costly.

Your parents should keep a close watch on the progress of the house being constructed for them and on the finances of the builder -- don't count on the builder to be looking out for anyone other than themselves in bankruptcy court -- it'd be smart for your parents to do the same.

[sbd78]

Originally Posted by Lonely Settler

My parents have a house currently under construction at Settler's Ridge (my wife and I closed on our house out here last year). According to what they were told all attempts will be made to complete construction. However, they were also told what steps to take to get back their earnest money if necessary. As I understand it it all depends on the ruling of the bankruptcy court today.

On a purely selfish note, I hope they (Kimball Hill, not my parents) are able to weather the storm. Our house is the only one on our block and (as my user name suggests) it's quite lonely out here. I would like to have some neighbors eventually.

I can tell you from watching the Neumann bankruptcy pan out (we bought a home from them right before they filed for bankruptcy) that in Neumann's situation, all the people who had put money down but construction had not started got their deposits back. I guess Illinois law requires the builder to hold that money in a separate account until construction begins. If ground had been broken and construction had started, then the builder had access to the money and it was tied up in the bankruptcy. So all the people who had homes under construction have not gotten their money back and must wait for another contractor to come in and finish their home, all while these homes sat all winter exposed to the elements. Not a fun situation to be in. Hopefully Kimball Hill's bankruptcy goes better. Good luck to all of you! I know how frustrating this can be.

And I agree with Chet, look out for yourselves. Kimball Hill, no matter how much they might sugar coat things, is looking out for themselves.

[sgresident]

there is an article in Crain's chicago business today and it says that kimball hill is seeking outside investors at this time and plans to continue building and selling homes. the article seemed to have a positive spin even though the topic wasn't.

[irish setter girl]

The Daily Herald reported today on the front page that KH is looking for an investor to help bail them out of their debts and is eliminating 75 corporate jobs. They also report that of the 2470 homes in Settlers Ridge 150-200 permits have been applied for according to Sugar Grove Officials. I would hope the 60 million KH has in cash is enough to keep these 150-200 homes going (although many are already occupied I'm sure) and give their employees a paycheck. Best of luck to everyone building out there!