LePore Comments on Home Builder’s Chapter 11

On November 11, 2006, Nick LePore was quoted in the Asbury Park Press article “Creditor says to liquidate Kara Homes.” Kara Homes is one of biggest home builders in Monmouth and Ocean counties in New Jersey, and has filed for Chapter 11 bankruptcy protection. North Fork Bank of Melville, New York, one of Kara’s biggest creditors, has claimed that Kara has no chance at surviving in bankruptcy and the company should be liquidated. North Fork filed a motion asking U.S. Bankruptcy Judge Michael B. Kaplan to reject the home builder’s bid to reorganize and requested the case be converted from Chapter 11 to Chapter 7. Nick said that “banks usually file (a motion to convert to Chapter 7) because they want to stop the bleeding of cash.” He continued, noting that unsecured creditors could lose out “if there are no assets other than those subject to the banks’ secured claims.”