IBJNews

Receiver: Insolvent Hansen & Horn should be liquidated

Back to TopCommentsE-mailPrintBookmark and Share

A receiver appointed in December to manage the assets of Hansen & Horn Group said Monday afternoon that the financially troubled home builder should be liquidated.

Attorneys for Ward and Stephen Horn, the father-and-son duo that operates Hansen & Horn, did not object to the recommendation made during a Marion Superior Court hearing.

Ward Horn declined to comment following the hearing.

Judge Heather A. Welch took the recommendation under advisement and will rule at a later date.

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

The judge’s order directed Lux to determine whether Hansen & Horn should remain in business, be partially liquidated, or completely liquidated.

The judge’s decision to appoint a receiver came one week after President Ward Horn admitted Hansen & Horn was insolvent.

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 for concrete work done during the past three years.

In all, Hansen & Horn is facing at least 20 lawsuits brought mostly by subcontractors hoping to recover more than $1 million.

Lux told the court on Monday that Hansen & Horn has assets of $7 million and liabilities of $14.5 million.

Once the judge issues her ruling, creditors will have 30 days to file a claim with the court to attempt to recover losses. Liquidation then would take about 90 days, said Trenton Hahn, a lawyer at Bose McKinney & Evans LLP who is representing Lux.

One creditor, Indianapolis-based Salin Bank and Trust Co., took issue with the proposed liquidation and requested the bank not be part of the receivership process.

Salin has loans to Hansen & Horn totaling $1.5 million, in which there is no equity, the bank’s attorney, Mike Lewinski of Ice Miller LLP, said. Further, the appraised value of the 49 home lots for which the loans were granted is just $950,000, he said.

“Salin would like to control its own destiny” and sell the properties on it own, Lewinski said. “Salin should not be harmed by the receiver’s actions, sequestering property for other creditors.”

But Hahn argued that, under law, a receiver has the right to sell the lots. Not being able to do so could negatively affect the developments, he said.

“There has been significant interest in these assets,” Hahn said.

Hansen & Horn has stopped building in more than 20 subdivisions in central Indiana, including the massive mixed-use Anson development in Boone County near Whitestown.

Founded in 1977, 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.
 

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