Trend Homes became the second Phoenix-area builder to file for Chapter 11 this week when it signed an unusual deal with another Phoenix company, private investment firm Najafi Cos.
According to a Najafi Cos. press release, the investment firm plans to buy Trend Homes for $65 million, but the deal is subject to a U.S. bankruptcy court approving a Chapter 11 reorganization plan submitted by Trend Homes.
The bankruptcy papers, which were filed yesterday, listed that Trend Homes has 50 to 99 creditors; $100,000 million to $500,000 million in assets; and $100,000 million to $500,000 million in liabilities.
Najafi said the bankruptcy proceeding will take roughly 90 days. During the bankruptcy process, Trend Homes expects to operate normally, without interruption, and will offer warranty services to its homeowners.
Trend Homes was listed as No. 85 in the 2006 BUILDER 100, with $303 million in revenues and 926 closings.
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