Friday, May 13, 2016

Keiser Homes’ bankruptcy costs customers thousands in deposits

From an article in the Portand Press Herald

The Chapter 7 filing of the Oxford-based modular home company means would-be homeowners are likely out of luck.

Autumn Poulin had expected to spend the next few weeks making sure her land in Wells was ready for a new modular home that was due to be delivered and assembled in June.

Instead, she is trying to get a $20,000 deposit back from Keiser Homes in Oxford for the three-bedroom, 2½-bath house that is now caught up in the bankruptcy filing of Innovative Building Systems, the Pennsylvania-based parent company of Keiser.

Its corporate parent, Innovative Building Systems, filed for Chapter 7 bankruptcy Wednesday, meaning that it is seeking to liquidate and use whatever money it has to satisfy secured creditors, rather than reorganize and reopen. The company listed assets of $5.2 million and liabilities of $16.9 million, according to its bankruptcy filing.

It also listed nearly $791,000 in deposits and prepayments in its filing in Delaware Bankruptcy Court, but it didn’t specify where those deposits came from or which subsidiary was involved. Besides Poulin, a Vermont lawyer says he’s also owed money, having put down $50,000 as a deposit on eight small homes he intended to convert into affordable housing for hurricane victims.

CLICK HERE to read the entire Portland Press Herald article


Anonymous said...

Someone at IBS needs to held responsible for paying back all the money that was collected from the people that paid for their housses and didn't get them. This is IBS ownrs fault and if they dont' they need to go to prison until they pay up.

Anonymous said...

It's imperative to look beyond the price and product and really focus on the company you are buying from. I worked in the industry for many years with reputable, financially solid companies and my pitch was always to explain to builders that they were dealing with a financially sound organization. Unfortunately, only a few builders really grasped how important that was in the big picture. Deals, gimmicks, rebates, etc can be effective but not when they become a way of doing business at the expense of what truly is good business practice.

Anonymous said...

Welcome to good ole' Capitalism in America. It ain't gonna happen.

Anonymous said...

16 million in liabilities and 5 mill in assesses ??? someone needs to go to prison!!!!