Hansen & Horn insolvent, receivership next step for builder

Back to TopCommentsE-mailPrintBookmark and Share

The president of Hansen & Horn Group Inc. admitted in court Thursday that the troubled home builder is insolvent and agreed to have a receiver appointed to operate the Indianapolis-based company.

Judge Heather A. Welch of Marion Superior Court 12 is scheduled to name a receiver at a Dec. 10 hearing.

It remains unclear, however, whether the financially pressed home builder can continue to operate, or whether it will file bankruptcy. But Ward Horn said he remains optimistic.

“We’ve got a great track record working with contractors and suppliers, and we’re going to continue to do that,” he said following the court proceedings.

Horn appeared in court following an effort by one of its suppliers, Indianapolis-based C&R Concrete Inc., to have Hansen & Horn placed in receivership.

C&R Concrete filed suit against the company and is seeking to recover $268,749 in concrete work done during the past three years. 

All told, the home builder is facing at least 20 lawsuits brought mostly by subcontractors hoping to recover more than $1 million.

Eric Allen, a lawyer for C&R Concrete, is pleased with the judge’s decision.

“We’re very happy with the outcome,” he said. “It’s what should have happened a long time ago.”

Hansen & Horn’s financial pressures have mounted in recent weeks following another lawsuit, in which its lender, Monroe Bank, was ordered to place a 90-day hold on its account after the company failed to pay a $183,000 judgment.

A hearing on that matter is set for Jan. 26.

Indianapolis-based Lee Supply Corp. sued the homebuilder after it failed to pay for materials and services, according to court documents. Hansen & Horn, meanwhile, attempted to have the lawsuit dismissed, a legal maneuver that the judge rejected Nov. 3.

Horn’s testimony on Thursday revealed he is president of two related companies, which further muddied the receivership proceedings. Hansen & Horn Group Inc. was founded in 1977 and has built homes under the moniker ever since.

But as its financial troubles worsened, he formed Hansen & Horn Inc. in January, to give Monroe Bank additional security. According to Ward Horn's testimony, the documents to form the new company, through which the loans flowed, required the signatures of his wife and the wife of his son, Steve, the company’s chief operating officer.

The loans flowed from Hansen & Horn Inc. directly to Hansen & Horn Group Inc.

C&R Concrete, meanwhile, quit working for Hansen & Horn in September after the home builder directed C&R Concrete’s bookkeeper to cash its checks only after receiving approval first. That approval never came, said Richard Grant, C&R Concrete’s owner.

“Everything I was told turned out to be a lie or false information,” said Grant, while admitting he thinks Hansen & Horn builds quality houses. “I felt like myself and other people have been given the runaround. Where do you stop at.”

Hansen & Horn’s attorneys, James Ammeen and Barbara Malone, had requested the receivership hearing be continued, but the request was denied by Welch.

The company’s previous counsel, Raymond Basile and Paul Carroll of the local Harrison & Moberly LLP firm, notified Marion County courts on Monday that they were withdrawing as company representatives.

Hansen & Horn is building in more than 20 subdivisions in central Indiana, including Duke Realty Corp.’s mixed-use Anson development in Boone County near Whitestown. It replaced Los Angeles-based KB Home Inc., which backed out of plans to build in Anson when it exited the Indiana market in July 2007.

The company has regularly ranked among the top residential construction companies in the Indianapolis area over the past decade, building more than 200 homes during several of those years.




Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. I am a Lyft driver who is a licensed CDL professional driver. ALL Lyft drivers take pride in providing quality service to the Indianapolis and surrounding areas, and we take the safety of our passengers and the public seriously.(passengers are required to put seat belts on when they get in our cars) We do go through background checks, driving records are checked as are the personal cars we drive, (these are OUR private cars we use) Unlike taxi cabs and their drivers Lyft (and yes Uber) provide passengers with a clean car inside and out, a friendly and courteous driver, and who is dressed appropriately and is groomed appropriately. I go so far as to offer mints, candy and/or small bottle of water to the my customers. It's a mutual respect between driver and passenger. With Best Regards

  2. to be the big fish in the little pond of IRL midwest racin' when yer up against Racin' Gardner

  3. In the first sentance "As a resident of one of these new Carmel Apartments the issue the local governments need to discuss are build quality & price." need a way to edit

  4. As a resident of one of these new Carmel Apartments the issue the local governments need to discuss is build quality & price. First none of these places is worth $1100 for a one bedroom. Downtown Carmel or Keystone at the Crossing in Indy. It doesn't matter. All require you to get in your car to get just about anywhere you need to go. I'm in one of the Carmel apartments now where after just 2.5 short years one of the kitchen cabinet doors is crooked and lawn and property maintenance seems to be lacking my old Indianapolis apartment which cost $300 less. This is one of the new star apartments. As they keep building throughout the area "deals" will start popping up creating shoppers. If your property is falling apart after year 3 what will it look like after year 5 or 10??? Why would one stay here if they could move to a new Broad Ripple in 2 to 3 years or another part of the Far Northside?? The complexes aren't going to let the "poor" move in without local permission so that's not that problem, but it the occupancy rate drops suddenly because the "Young" people moved back to Indy then look out.

  5. Why are you so concerned about Ace hardware? I don't understand why anyone goes there! Every time ive gone in the past, they don't have what I need and I end up going to the big box stores. I understand the service aspect and that they try to be helpful but if they are going to survive I think they might need to carry more specialty parts.