Judge approves Kara reorganization
Posted by the Asbury Park Press on 09/12/07
BY DAVID P. WILLIS
BUSINESS WRITER
TRENTON A bankruptcy court judge today approved a plan that will
bring Kara Homes Inc. out of bankruptcy and complete construction at
11 housing developments.
"There is no doubt, I am confirming this case today,'' U.S.
Bankruptcy Court Judge Michael B. Kaplan said this afternoon.
The decision approves Kara's plan to turn over the company to a
group that includes Lakewood developer Glen Fishman. Kaplan turned
away an objection by Kara Homes founder Zuhdi Karagjozi, who has no
role in the new company.
With the plan approved, Plainfield Speciality Holdings II Inc., a
Greenwich, Conn.-based hedge fund and Fishman will take control of
the company. Kara Homes will be renamed Maplewood Homebuilders.
Now Plainfield will give the company an infusion of $12 million. A
revolving loan of up to $30 million will be used to complete
construction of 130 homes under contract with potential home buyers.
"We expect this to be easy lifting for us, to be blunt about it,''
said Thomas March, executive vice president at Maplewood
Homebuilders, which is based in Rahway.
Kara Homes filed for Chapter 11 bankruptcy on Oct. 5 after a cash
crunch and a slowdown of the housing market.
In court today, Perry Mandarino, the chief restructuring officer
appointed by Kaplan last November, said Plainfield was the only
group willing to provide the company with the funding it needed to
emerge from bankruptcy.
"We went to a slew of people,'' he said.
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