Local Bank Enters the Home Building Business
Magyar Bank is publicly traded. Ticker = MGYR.
TRENTON — Kara Homes can sell four of its developments at an auction to repay one of its lenders, Magyar Bank, a judge ruled today.
The decision by U.S. Bankruptcy Court Judge Michael B. Kaplan could set the stage for another builder to finish homes for 14 buyers who have contracts and already have spent thousands of dollars in down payments.
The developments, which include a total of 29 single-family lots, are: Danya Estates in Toms River; Hartley Estates in Little Egg Harbor, Prospect Ridge Estates in Stafford and Sterling Acres in Monroe.
Full article...
TRENTON — Kara Homes can sell four of its developments at an auction to repay one of its lenders, Magyar Bank, a judge ruled today.
The decision by U.S. Bankruptcy Court Judge Michael B. Kaplan could set the stage for another builder to finish homes for 14 buyers who have contracts and already have spent thousands of dollars in down payments.
The developments, which include a total of 29 single-family lots, are: Danya Estates in Toms River; Hartley Estates in Little Egg Harbor, Prospect Ridge Estates in Stafford and Sterling Acres in Monroe.
Full article...
posted by Little_Silvered at 7:14 PM
16 Comments:
Wow, Sterling Acres will never be the same without those barren lots & unfinished houses, you know? The unoccupied homes & the mud provides that certain ambiance one seeks when dropping a million plus on a house. It's like your whole neighborhood is a playground and every day is FUN day! I think I will buy up all those properties at the auction, so I can preserve the site as a memorial to sound business practices and wise investments. I shall call it, "Zudiful Acres" & I will establish upon my preserve a combination halfway house/museum where the public can view broken developers and unemployed loan officers in their more or less natural state. I will probably use a Buckingham, but only if I can get the breakfast nook.
Good analysis, scprofessor. I was thinking the same thing about Zudi's 90 day reprieve. At least it looks like this mess could be over in a few months.
Thank you for the analysis professor. Speaking as a buyer it would be preferable to see some action on behalf of the creditors to 'take the bull by the horns' and bring this to a conclusion... one way or the other.
I can't help but to think if this was a mass scale, national builder (i.e. pulte, centex) that there would be some sort of bailout from a gov't entity. Say instead of 300 contracts there were 10,000 or more (pulte delivered 45,000 homes in 2005, centex 39,000). Say it was a combination of builders and the number was much larger. After all we bailed out Chrysler almost 30 years ago! I am just amazed that our gov't can watch hundreds of persons' life savings just vanish becuase of the carelessness of how one man ran his company.
I'm looking for a good attorney that is already representing some home buyers at Landings at Manahawkin. My current attorney is showing little interest in this case and I feel he has to be replaced. I have read that some attorneys have already filed claims for their deposits with the bonding company and would like to proceed with that sooner than later. I feel that the buyers at the Landings are protected because of the bond in place, but am afraid that if the proper procedures are not filed, something could go wrong. I'm surprised that no attorneys have used the bankruptcy filing to obtain the names of the homebuyers as a way to solicit and/or represent the 67 contract holders at the Landings.
The Landings has bonds totaling $4 million and from the filings I was able to identify approximately $2.5 million of deposits listed as unsecured creditors. So I don't think this should be a problem. I would like to use an attorney that is already familiar with this case and specifically with a Landings customer. Any help would be appreciated.
The big deadbeat Zudi Karagjozi weasels out of paying for landscaping on his own property because he let someone from marketing take pictures of it once. Scumbag. If there was still anyone out there that seriously believed this guy cared even slightly about your respective plights, you see this is clearly not true. He's always about "more money & more time" but no matter how little or how much of either you give him, the end results are always going to be the same. Here's a guaranteed method to determine if he's lying: his mouth will be moving.
Here's a story about the REAL Kara Homes, Zudi Karagjozi CEO. Once he gets your money, you are on your own.
http://tinyurl.com/ygfbx9
Oh good heavens, we wouldn't want something terrible to happen to the debtor's estate, would we? God forbid it should end up in the hands of those mean, nasty creditors. It'd be a real tragedy if the debtor were to cease operations, losing such a brilliant executive team would be a real shame. Anyone who loans them more money would get better returns by just running it all through a shredder.
Can anyone explain why Kara Homes feels the need to keep hauling around that ridiculously bloated payroll? It's totally absurd, the company has not "re-organized" EVEN ONE BIT! The exact same guilty parties are still being paid despite contributing NOTHING to Kara Homes right now. That money could be used for something constructive instead of subsidizing a few nitwits & their lifestyles.
Wow, the Kara people sure have gotten quiet lately. It sure is interesting how their loans keep falling through, I guess after a prospective lender takes a good look at Kara's management, they can't get away fast enough. Can't fault them for that. Businesses don't usually maintain success by giving away money to crooks and scam artists.
Hey, Zudi has his own Myspace page...
http://www.myspace.com/bankruptbastard
Check it out~!
If you had not guessed, that myspace site was put up bye an imposter. Recognize that it was not authorized by Zuhdi Karagjozi. Look little man responsible for such action. Why don't you grow up? I order you to sease and dissest immediately.
Spammers suck, look at that retard. I wouldn't invest a bag of dirt with that ass clown.
Hey Zuhdi... Don't you know that you cannot order anyone!!!
Latest News on Kara.
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.
On Jan. 29, U.S. Bankrupcy Court Judge Michael B. Kaplan will consider whether Kara can receive the balance of a proposed $5 million line of credit from Plainfield Special Situations Master Fund Ltd., a hedge fun based in Greenwich, Conn.
The money that Kaplan approved today will be used for administrative expenses, such as employee wages, rent and utilities.
The Plainfield loan would be the second loan Kara Homes has received since it filed for bankruptcy in October. In early December, Kaplan approved a $2.6 million loan from Bear Stearns. Of that amount, $1.85 million has been spent, Kara's lawyer, Joseph J. DiPasquale said in court today.
East Brunswick-based Kara filed for Chapter 11 bankruptcy Oct. 5, saying the real estate market downturn prevented it from paying its debts. The company reported $350 million in assets and $227 million in liabilities. The filing left about 300 would-be home buyers, and their millions of dollars in deposits, in limbo.
Plainfield Special Situations Master Fund is a multibillion-dollar hedge fund. H. Jeffrey Schwartz, a lawyer for Plainfield, said the hedge fund is interested in providing money to fund Kara's reorganization plan.
In court, Kara's lawyers said that while Bear Stearns provided money at a time when it was needed most, the companies' relationship didn't work out. Warren A. Usatine, a lawyer for a committee of unsecured creditors, said Kara has been "encountering obstacles and roadblocks'' in getting approval for any future financing from Bear Stearns.
Kaplan also gave Kara approval today to sell two developments: Woodland Estates in North Edison and Kara at Monore. The sale is subject to an auction, but already a joint venture between Fenix Investment and Development, a Morristown home builder, and Riverside Capital Management, a Shrewsbury investment company, has agreed to pay at least $11.6 million for Woodland Estates and $2.8 million for Kara at Monore, according to court papers.
The money would pay off debt to Kara's lender on those two projects, Investors Savings Bank. Kaplan must approve the results of the auction, which will be held March 1.
This objection filed with the court summarizes the entire case very well. Of particular note are the comments regarding the unsecured creditors committee.
http://www.app.com/assets
/pdf/B357048116.PDF
Yes, the Creditors Committee stance amazes me. I wonder whether its decision to support this motion is more about the fact that it carves out a source of funding its attorney's compensation rather than doing what is best for the creditors of this case. In other words, the rhetorical question for Warren A. Usatine, attorney for the Creditors Committee, is was your decision to support this motion based upon what's best for the unsecured creditors of this case, or what's best to insure that you will get paid?
SCProfessor, care to comment....
Post a Comment
<< Home