IBJNews

Judge signs off on Hansen & Horn liquidation

Back to TopCommentsE-mailPrintBookmark and Share

A Marion Superior Court judge has approved the liquidation of Hansen & Horn Group Inc., allowing a receiver to proceed with selling the Indianapolis-based home builder’s assets.

The order signed by Judge Heather A. Welch on Wednesday follows a recommendation Feb. 22 by court-appointed receiver Richard Lux that the financially troubled company’s assets should be sold in an attempt to repay creditors.

Welch in December selected Lux of R.P. Lux Co., an Indianapolis-based real estate services firm, to operate Hansen & Horn as it attempted to avoid bankruptcy.

Court documents show the company has about $7 million in assets and $14 million in liabilities. Creditors have until noon April 15 to submit a claim to the court.

Lux is directed by the court to maintain all proceeds from the liquidation in a bank account, and to file a report with the court within 90 days of the judge’s Wednesday order.

In the meantime, Hansen & Horn is prohibited from transacting any business, including issuing checks or executing contracts, the judge said.

Welch already has instructed Lux to further investigate whether any fraudulent activity has occurred between the home builder and Camp Wright Investments LLC in Pittsboro regarding the purchase of home lots at Hawks Landing within the Fishers Gray Eagle development.

However, Trenton Hahn, a lawyer at Indianapolis-based Bose McKinney & Evans LLP who is representing the receiver, said neither he nor Lux thinks Camp Wright was involved in any fraudulent activity.
 
Altogether, Hansen & Horn owns 117 lots targeted for residential development, 49 of which were purchased with loans provided by Indianapolis-based Salin Bank and Trust Co.

Salin’s loans to Hansen & Horn total $1.5 million, in which there is no equity, the bank’s attorney, Mike Lewinski of Indianapolis-based Ice Miller LLP, argued at a February court appearance. Further, the appraised value of the 49 home lots for which the loans were granted are appraised at just $950,000, he said.

“Salin would like to control its own destiny” and sell the properties on it own, Lewinski said in February. “Salin should not be harmed by the receiver’s actions, sequestering property for other creditors.”
 
In her Wednesday order, however, Welch denied Salin’s request and sided with the receiver’s position that removing the properties from receivership could negatively affect the value of other lots within the developments.

“There’s been a significant amount of interest in the assets of Hansen & Horn, and it’s coming from reputable residential developers and other real estate professionals who see value in the vacant lots and the model homes that are currently under construction,” Hahn told IBJ.

A lawsuit brought by one of the home builder’s suppliers, Indianapolis-based C&R Concrete Inc., prompted the receivership. C&R is seeking to recover $268,749 in concrete work done during the past three years.

In all, Hansen & Horn is facing at least 25 lawsuits brought mostly by subcontractors hoping to recover more than $1 million. The lawsuits are stayed pending the resolution of the liquidation.

Hansen & Horn has stopped building in about 15 subdivisions in central Indiana, including Duke Realty Corp.’s mixed-use Anson development in Boone County near Whitestown, where just a handful of houses have been built.

Anson General Manager Thomas Dickey said Duke had been preparing to continue without Hansen & Horn and is receiving interest from other builders.

“Last summer, it was clear to us that they were having cash-flow problems,” Dickey said of Hansen & Horn.

Founded in 1977, Hansen & Horn 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.

Any creditor who wishes to file a claim can obtain one by contacting Lux at rlux@rplux.com, or at 635-3333.

 


 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
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
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT