Chicago-Area Homebuilder Bankruptcy Plans Rejected
New subdivisions and homes may not be finished after Kirk Corp reorganization plan is rejected in bankruptcy court
A company that was building 500 homes a year in the suburbs outside Chicago recently filed for Chapter 7 bankruptcy, despite their attempts to reorganize.
The Chicago Tribune reports that after two days of testimony in downtown Chicago bankruptcy court, a judge ruled that Kirk’s future business plans were unrealistic.
In business since the late 1970s, Kirk still had plans for homes in Illinois communities Woodstock, Lakemoor and Bolingbrook. The plan they outlined in court would have them continue to build almost 80 homes a year in such places, but a judge called those prospects unrealistic. Kirk Corp’s proposed plan also didn’t offer enough protection to JP Morgan Chase, a main creditor of the home developer.
Representatives for Kirk weren’t sure what would be next, but the business will almost certainly wind down. One possibility is a Chapter 7 bankruptcy.