Kara Gets Replacement Loan
TRENTON — A judge today allowed Kara Homes Inc. to replace a $2.6 million loan from an investment bank with one borrowed from a hedge fund, and he will decide later this month whether an additional $2.4 million can go to the beleaguered home builder.
Kara will use the $2.6 million to pay off investment bank Bear Stearns and to fund its operations through the end of the month.
Full story...
Kara will use the $2.6 million to pay off investment bank Bear Stearns and to fund its operations through the end of the month.
Full story...
posted by Little_Silvered at 9:32 PM
64 Comments:
scprof, there are two sides to every story. I put my side up on my blog. You look like a teacher I had at ucla. He was a jerk and they fired him. Did you teach their. The way you write sounds like how this pompis ass talked.
scprof, there are two sides to every story. I put my side up on my blog. You look like a teacher I had at ucla. He was a jerk and they fired him. Did you teach their. The way you write sounds like how this pompis ass talked.
scprof, there are two sides to every story. I put my side up on my blog. You look like a teacher I had at ucla. He was a jerk and they fired him. Did you teach their. The way you write sounds like how this pompis ass talked.
scprof, there are two sides to every story. I put my side up on my blog. You look like a teacher I had at ucla. He was a jerk and they fired him. Did you teach their. The way you write sounds like how this pompis ass talked.
scprof, there are two sides to every story. I put my side up on my blog. You look like a teacher I had at ucla. He was a jerk and they fired him. Did you teach their. The way you write sounds like how this pompis ass talked.
scprof, there are two sides to every story. I put my side up on my blog. You look like a teacher I had at ucla. He was a jerk and they fired him. Did you teach their. The way you write sounds like how this pompis ass talked.
scprof, there are two sides to every story. I put my side up on my blog. You look like a teacher I had at ucla. He was a jerk and they fired him. Did you teach their. The way you write sounds like how this pompis ass talked.
Did you ever see one of those old "MASH" episodes where Hawkeye is desperately trying to save a patient and he's doing CRP, beating on his chest and saying, 'C'mon, live, dammit!"? He's going on and on and then one of the other doctors says, "He's gone, it's over, Hawk.", and Hawkeye just gets angrier and angrier and won't quit until the other doctors have to physically restrain him? Right now Kara Homes reminds me of that. Sad and pathetic and totally futile. Plus, Hawkeye's hair turned gray towards the end of his run, too.
http://www.app.com/apps/pbcs.dll
/article?AID=/20070117/NEWS/701170325
What a joke. How much more time & money does deadbeat Karagjozi need to "reorganize"? All these loans accomplish is funding his team of overpaid chums. Shut the clown down, auction away his assets & draw this thing to a close already.
Zuhdi... I will pursue you to the ends of this earth to get back my life savings which you have STOLEN!!!!
It is pretty simple. I have a contract for a house which is not built. Therefore I deserve my deposit back. But you insist on hiding behind lawyers while living in a multi-million dollar home. Well enjoy it while you can because I will make sure you spend the rest of your days in prison.
The judge must be one extremely patient and sympathetic guy because that's the only explanation that would explain why this ridiculous charade keeps dragging on. These pitiful emergency loans serve no purpose at all other than giving Zudi and his friends a place to go every morning and a paycheck to cash every week. The only thing that Kara has done for months now it show up in court with their hands out. No one wants to loan them any money or get involved in business with them. These so called bankruptcy specialists came on board and so far have accomplished nothing other than making a small fortune at the expense of the creditors. They've been there for months and have not reorganized a thing. The company is still full of people drawing a check despite having had nothing to do for three months now. The creditors and customers who were ripped off funded this outfit before they hid behind chapter 11 and now they're basically funding them again and it is an absolute crime.
In the last year, the world has seen the substance behind the Zudi myth. During 2006, while his company was going down in flames, he had no answers and he hasn't offered any answers since. The company is exactly where it was in October, trying to finalize a $5 million loan from some shadowy high interest lender so they can continue to support Zudi's family and friends. Zud's mouthpiece is always talking about these potential saviors but none ever arrive. He must know Zudi very well, because promising things that never arrive is Zudi's strong suit. Ask any of his customers, or creditors, or employees. If breaking promises was an Olympic event, Zudi would be dripping with gold medals.
The unsecured creditors committee is a joke. It takes them forever to just update their blog with any relevant information. They object to nothing and whatever their goal is, it doesn't represent any creditors I know. Whatever their lawyers get paid is way too much, they're less than useless.
This judge must be a moron.
Some news over at Zudi's blog about layoffs that are suppose to happen at Kara tomorrow. Maybe the inner circle is going to be smaller. No, that would make sense. Expect some low salaried employees who actually do some work get cut. Gotta leave that executive team intacted for the reorganization.
Zuhdi- how do you have time to post blogs? you should be out looking for construction financing. though the majority think it's utterly futile, the judge has granted you a small window to find funding. so stop wasting time taking shots at the prof and find the f'ing cash. until you do, stay off the Internet jackass.
Do you actually think it really is Zuhdi posting on the "what is bankrupty" log? The man can't even turn on his laptop. Work with me here.
whether it’s Zudhi or others in his inner circle, someone is reading and posting to this site. same message applies. stop wasting our time and money.
Let's try this again. It's someone being sarcastic.
Zudi thinks a blog is something you get lumber from. To him, "the Inter-net" is the lining in his swim trunks. He tried to send an email once, but couldn't find any e envelopes. When he hears "log on", he heads for the men's room. When he hears "broad band" he thinks of the Go-Go's.
Did anyone get laid off Friday??? Who is left
No one has & no one will until the money is all gone for the last time.
Hello everyone, just wanted to let you know I read this site, Thank you, Mrs.Perotti
"Terry Morrison and Nancy Seiler were residents of the New Lisbon Development Center, a New Jersey state facility for people with developmentally disabilities. On Thursday, September 7, 2006, the two moved to a two-story home on Old Main Shore Road, far away from the institutional existence both had known for much of their lives. On Friday, September 22, 2006, a ribbon cutting ceremony was held honoring the generosity of Kara Homes, a prominent developer in the region. Thos home was donated by Kara homes, who is also donating two other homes in Barnegat and one in Middletown, NJ that have not been built yet." See:
www.comop.org/pdfs/Fall.06.pdf
For those of you who want to see Mrs. Perotti’s husband, he is pictured at this ribbon cutting ceremony. So, I guess this leaves us with a few questions.
1. How many subcontractors and material suppliers unwillingly donated their labor and materials on this project?
2. What are Zudi’s plans relating to Kara’s donation of the additional 3 homes?
3. Why would a company in Kara’s shape (filing BK about 2 weeks after the ribbon cutting ceremony), be in the charity mode and not in the bill paying mode?
Poor Zudi. Looks like that Florida partner he has been counting on is going the route of a KARA HOMES II. You can read about them at http://www.bradenton.com/mld/bradenton/news/local/16504432.htm
re: anon 10:38:27 AM - great question. Kara couldn't even manage to pay us for working on that very date. Too bad Zudi didn't devote as much energy to making sure he balanced his books as he did with polishing that businessman/community leader image he so craves. Also too bad his charitable side doesn't apply to those who bought something from him or worked for him or loaned him money.
I am a little confused as to how someone has the same blog name as I do. Any suggestions? I just find it strange that this clown couldn't be a little more original.
RE: ribbon cutting, I guess there were no golf courses to sneak onto that afternoon.
Hey Kara Homes Inc., you'd best get on the ball with those W-2 forms because if it's not here on time, you will rue the day.
I don't think late W-2 forms is going to be first on the Kara Homes Inc. problem list. I think they come straight from checkpoint anyway.
The bottom line is the Federal gov and The AG are a little more concerned with some of the other "issues" the firm has had. Late W-2 won't even make their top 20 reasons for being in deep crap.
ExKoolAid:
Can you be more specific?
"The bottom line is the Federal gov and The AG are a little more concerned with some of the other "issues" the firm has had. Late W-2 won't even make their top 20 reasons for being in deep crap."
I hope the AG office & the feds really do go after Mr. Empty Pockets & pin something on him that sticks. He can keep begging for more money & more time, but sooner or later both will run out. Then we'll see what the genius is all about. The real Kara story is eventually going to get out, not this nonsense in the papers about "slowing markets". And when that story is known, Karagjozi will look like the crooked horse's ass he is in real life.
Instead of a replacement loan maybe they should consider a replacement CEO, like someone who has a clue or two.
I don't know if the Fed is looking at him but they need to, just to give the impression of concern for its citizens. Although, there may be a secret investigation...
Maybe it was just incompetence, or maybe it was something more, but one thing is totally clear. A whole S-load of money went "poof" with very little to show for it on the ground. It all happened in just a few years, too. Things like that don't just suddenly "happen" because the "market slowed down", it happens because a) someone is incompetent to the point of negligence or b) it was a scam of some kind. I don't see any other local builders massively imploding due to market conditions, only one. Time will tell whether Zudi is a crook or merely an idiot.
A new article appears today in the Asbury Park Press relating to the auction of developments. You can read it at:
http://tinyurl.com/ynsfjq
A Google search discloses:
DJM Asset Management and Traxi have business ties. See http://tinyurl.com/yobwyb
DJM and Sheldon Good also have ties. See http://tinyurl.com/25m9ll
So what you are seeing is one side of the "I'll scratch your back if you'll scratch mine" world of the bankruptcy professionals. As this economy slides, these guys will work together getting involved in cases and returning favors. Tough job here. All that is being done is that the banks are buying the collateral they in reality already own. I guess they are being charged for the auctioneering services. No doubt it appears on its face to be a relatively minor percentage but when that percentage is multiplied by the total auction price, well it becomes a sizeable premium given the little work involved. That is no doubt why Fenix is objecting.
So let me see if I have this right. Auctions go something like this. “I have an opening bid of $8.9 million from Magyar Bank. Going once, going twice, SOLD.” I wonder how much DJM and Sheldon Good make for that outstanding effort?
Hey, I'm curious. got the info provided below from an Asbury Park Press article. You can find it at:
http://tinyurl.com/2emafh
Anyone have an idea what this is and whether or not it belonged to Zudi? Was located in Long Beach Township.
Seller: Betsy Karagjozi a.k.a. Lysbeth Karagjozi
1132 Eighth St.: $290,000
Buyer: Melissa Fernandez, Kevin Oneill
Anytime you read a Kara article in the APP, notice the "related headlines" on the right side of the page. That list of headlines says it all about Kara, practically every one of them is related to Kara's inability to survive without outside help. Pitiful.
Anonymous 11:22:20 AM
I think it should have been posted as
2901 S. Long Beach Blvd. $1,401,000
Buyer: Heidi J. Hayat, Aleem M. Hayat
Seller: Betsy Karagjozi a.k.a. Lysbeth Karagjoz
So, Zudi and his spouse are getting rid of assets in anticipation of avoiding creditor claims. Whether or not Zudi chooses to believe it, I'm guessing that the bonding companies or anyone who has a Zudi generated personal guaranty isn't going to be too happy about this activity of getting rid of assets. Brings to mind the discussion that took place on this Blog a few months ago about his being advised by counsel to transfer assets into his wife's name alone in case he had to file bankruptcy. Thoughts?
It'll all be over and done by the end of next week. Everyone is bailing on Kara now, as they realize there is absolutely no hope at all. There is no reason to keep the place open anymore, nothing to build, nothing to sell, nothing to do. Nice job, Zud, you really outdid yourself during your re-organizational effort.
Why do you say it will be all over by the end of next week?
Think about it. If they're denied next week, that's all folks, money gone, lights out. If they do get that paltry loan, big whoop. It will allow more time for the bankruptcy bunch to unload more Kara properties that will never go anywhere so long as Zudi owns them.
So maybe "next Friday" is a bit presumptuous, although certainly possible. But this folly isn't going to go on forever. This is not like a personal bankruptcy, where the idea is to provide an individual debtor a "fresh start" by absolving them of personal debt. Chap. 11 provides a company the opportunity to demonstrate to both the court & the creditors that the business in question has the ability to become profitable and self-sustaining once again, and soon. It is not a system designed to merely prop up a failed business while it desperately seeks more ways to absorb even more debt it clearly cannot handle in the hopes that "someday" someone or something will come along to rescue it.
So long story short, the court is not going to allow emergency loans forever, nor are they likely to allow some loan shark an opening to gouge the living hell out of such a large group of creditors so one incompetent & ineffectual CEO can dream for another week or month or whatever. Time to stick a fork in Zudi, he's nearly done.
Hear that Zuhdi? You dope.
Anonymous 6:06 is right. They are unloading. Is there a way to check on Rose, Kelly and Jablonski to see if they are too?
One of 3 scenarios...
They're gonna skip together with the cash right after Kaos Homes falls like he was told he should have done 2 years ago by McGowan.
They need the dough to cover his very expensive attorney fees in mulitple personal fights with creditors whom he gave personal guarantees to.
Or, Betsy is moving out and saying "FU" to Z crook as he goes down in flames, which I would do if I were her in my opinion. What a great made for TV movie it could be.
By the way, I finally found a job in modular units for Russia. It's not what I wanted but it's a living, which I am thankful for. How did everybody else fare the last couple of months? Or dare I ask?
Zudi was and is a fraud. Everything he did and said was fraudulent. With that being said, Zudi truly believed in his line of BS and when confronted with harsh realities amintained that his way was the best. He is still trying to rope in joint venture partners. Can you believe there are some that are listening?
is there deadline for traxi to secure construction funding? how long can this crap drag on before they liquidate?
SCprofessor
you seem to have quit an interest in the Kara Homes situation from California?
Hey Anon 9:38
Did you just land on this planet from Mars? SCProf has addressed this topic at least 6 times already. Go back and read past postings if you want the reasons why he is interested in KH case!
Beazer Homes USA Inc. reported Thursday a first-quarter loss and said it sees little proof pointing to "meaningful" recovery in the nation's housing market. Given the current market conditions (and not to mention their inept management), Kara has no shot at recovering. Pull the plug already, so we can all get on with our lives.
Yes I did just land on this planet. I saw something strange a coralation between Kara Homes and another BK case whereasin money was filtering out through fraud, actually changing the names of payees on checks and a wiring scam--I had no knowledge of Kara Homes up until a couple months ago when I found a document that had Zuhdi's name all over it-- trying to figure out what is really going on
Anon 9:38, the short answer is I'm developing a course on Fraud Examination while on sabbatical. Somehow the words "fraud" and "bankruptcy" often go hand-in-hand. Kara Homes may present an interesting case study for the course and I was actively involved in a professional capacity with developer related bankruptcies in my former profession. Something about "big egos" and "fraud" that also goes hand-in-hand.
Interesting piece of news about the potential purchase of one Kara project to preserve the land as open space.
See: http://www.thnt.com/apps/pbcs.dll/article?AID=/20070124/NEWS/70124017
scprofessor
your first name would not be arthur would it?
anon 11:15:40 AM- anything more specific you can share?
cohen
or is it really Sam Miller
anno 12:38:06
I am not sure? This is very bazarre; appears Blatant no fear no respect---did you work for Zuhdi and what can you share?
anon 12:09:
my favorite quote from that article:
"It's by sheer luck Kara Homes went bankrupt."
anon 1:16:30 PM, I did work for him & I can say with certainty that he is a lying sleazebag who would go to any lengths to avoid paying his debts. For examples, please refer to Kara's encyclopedia of fraud aka the chapter 11 filing.
Judge Kaplan was a trustee before being appointed. He really is a pretty bright guy. I would be shocked if Zudhi's mom and uncle's claims stick. Is this guy sharp or stupid enough to hire somebody to steal the money? I was embezzled in 04 by my trusted accountant--so I know how you guys feel. It's extremely odd that Hecktor had to loan him money in 04 without repayment at a rate of 20%---that's more like a partner than an investor.
I wrote what I know to the trustee. After firing a financial guy I found all of Kara's info in a steneo pad this was early 05-presumed to be written around 8/04-We supboned their records through Roberta who claimed no knowledge--We went round and round and got no where. When I found out about the BK it was right up this guys alley.Can a screan name and I will forward what I have. This certainly does seem to be criminal and frankly I am a little afraid.
For any of the 300 families duped by Kara, go to the following link and petition Gregory Paw at State AG’s Office, Department of Criminal Justice. Kara intentionally lied about their financial stability and consequently defrauded many of us. We’ll likely never get our money back, so at least we can make sure these crooks get what's coming to them.
http://www.state.nj.us/lps/dcj/tips.htm
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