Friday, July 06, 2007

Plan and Disclosure Statement-Links to Documents

Tuesday, July 03, 2007

Summary of 7/2 Omnibus Hearing

On July 2, 2007, the Court held an Omnibus Hearing with regard to the following applications and motions:

1. Wells Fargo Financial Leasing Motion for Adequate Protection, or in the Alternative, Relief From Stay Regarding Equipment Lease: This motion was withdrawn.

2. Richard and Patt Rushes Motion to Compel immediate Assumption or Rejection of Executory Contract for Sale of Real Estate: This motion was granted and Consent Order is to be submitted.

3. FMI Insurance Company Motion For Relief From Stay to Proceed with State Court Action: This motion was adjourned to July 16, 2007 at 1:00 p.m.

4. Motion to Sell 16 Sanibel Court, Bergen Mills Estates: This motion was adjourned until July 16, 2007 at 1:00 p.m.

5. Seiden Motion to Terminate Real Estate Contract and to Permit Claim Against Bonding Company: This motion was granted with an Order to be submitted.

6. Motion for Authority to Obtain Credit under Section 364(c) and Rule 4001 regarding Orchard Meadows: There is no opposition to this motion and an interim order allowing the financing will be entered by the Court.

7. GE Capital Modular Space Motion for Relief From Stay: This motion was adjourned until July 16, 2007 at 1:00 p.m.

8. Motion to Compel Payment of Administrative Claim by Sullivan & Company, Inc.: This motion was resolved among the parties with an Order to be submitted to the Court.

9. Motion to Sell Certain Assets of Kara at Gleneyre, LLC: This motion was granted, with an amended Order authorizing the sale to be submitted to the Court.

Lastly, the Court addressed the hearing on the Amended Disclosure Statement, currently scheduled for July 6, 2007 at 10:00 a.m. Following discussion with Debtor’s counsel, the Court sua sponte adjourned the hearing on the Amended Disclosure Statement until July 19, 2007 at 1:00 p.m.

The next Omnibus Hearing date scheduled is for July 9, 2007 at 1:00 p.m.

UPDATE-Disclosure Statement Hearing Adjourned

Please note that the first amended master disclosure statement and plan of reorganization was filed on June 27, 2007. As a result, the hearing on the adequacy of the master disclosure statement has been adjourned to July 19, 2007 at 1:00 pm.

Wednesday, June 13, 2007

Summary of 6/13 Hearing-Global Settlement with Amboy National Bank

On June 13, 2007, the Court held a hearing on the Motion to Ap[prove a Global Settlement by and among several Kara entities, Zuhdi K., the Committee of Unsecured Creditors and Amboy National Bank. There were several objections raised to the global settlement, each of which were resolved and will be documented in a revised proposed order approving and authorizing the settlement. As the settlement is the "lynchpin" to a revised plan of reorganization to be formulated by the Debtors, Plainfield and the Committee, the entry of the revised proposed order will further advance the reorganization process.

Summary of 6/11 Hearing

On June 11, 2007, the Court held an omnibus hearing addressing the following item:

1. Motion to Sell Fifth Group of Designated Homes: The Debtors were able to resolve all objections to the Motion and a consent order will be entered.

The next omnibus hearing date is scheduled for Monday, June 18, 2007 at 1:00 pm in Trenton, New Jersey.

Monday, June 11, 2007

UPDATE-Disclosure Statement Hearing Adjourned

Please be advised that the hearing on the adequacy of the master disclosure statement has been adjourned to July 6, 2007 at 10:00 am.

Thursday, June 07, 2007

Summary of 6/5 Hearing

On June 5, 2007, the Court held an omnibus hearing on the following motions/applications:

1. Motion regarding termination of contract and for further relief on behalf of the Baiks: Granted with an order to be submitted setting a hearing date for remaining issue concerning the doors and windows.

2. Motion for relief of stay regarding modular units on behalf of GE Capital modular space: Adjourned to June 18, 2005.

3. Motion to reject executory contract on behalf of Angelo Pantazes: Adjourned to June 25, 2007.

4. Motion to compel debtor to assume or reject the agreement of sale on behalf of estates at North Edison LLC: Motion withdrawn as moot.

5. Motion for relief from stay regarding real property located at Woodland Avenue, Edison on behalf of Investor Savings Bank: Motion withdrawn as moot.

6. Motion for relief from stay regarding real property Park Meadow at Edison on behalf of Investor Savings Bank: Motion withdrawn as moot.

7. Motion to compel rejection of executory contract and grant lien on behalf of Herbert and Sonya Yefsky: Motion withdrawn.

8. Motion to reject executory contract on behalf of Arvind and Sarita Grover: Withdrawn.

9. Motion to compel rejection of executory contract on behalf of Phil Dounelis: Relief granted with consent order to be submitted.

10. Motion for adequate protection or relief from stay on behalf of Wells Fargo Financial Leasing, Inc.: Adjourned to July 2, 2007.

11. Motion to compel rejection of executory contract and relief from stay on behalf of Lance and Gloria Romeo: Granted with a consent order to be submitted.

12. Motion to allow late filed claim on behalf of Guardian Protection Services: Order entered and hearing withdrawn.

13. Motion to compel payment of administrative claim or in the alternative award payment of compensation of fees and expenses on behalf of Marc P. Sullivan and Sullivan and Company: Court determined that Sullivan was a professional that needed to be retained pursuant to 11 U.S.C. 327 and that the failure to be retained was excusable based on Sullivan’s reliance upon debtor’s counsel to prosecute the retention application. Sullivan is entitled to compensation for fees and expenses incurred from the petition date through November 6, 2006, at or about the time Perry Mandarinio and Traxi, LLC were retained as Chief Restructuring Officer. Hearing was adjourned pending a determination of the appropriate fee amount for the one month of Sullivan’s work.

14. Motion for determination that contract of sale is terminated on behalf of Howard and Janet Grant: Order entered, hearing withdrawn.

15. Motion to compel closing on real property on behalf of Elliot and Victoria Eganburg: Adjourned to July 16.

16. Motion declaring executory contract rejected terminated and null and void on behalf of Teresa Cueva: Order entered, hearing withdrawn.

17. Motion to sell certain assets of Kara at Glen Eyre, LLC: Hearing adjourned to June 18, 2007.

18. Motion to file a late proof of claim on behalf of all of All About Construction, Inc.: Granted.

19. Motion for authority to obtain credit under Section 364(b) regarding Hawkins Ridge: Granted with consent order to be submitted.

20. Motion for relief from stay on behalf of Dr. Bagoff: Granted.

21. Motion for authority to obtain credit under Section 364(b) on behalf of Kara at Orchard Meadows: Hearing adjourned to June 18, 2007.

22. Motion to extend time and exclusive period for debtors to solicit acceptances of plan: Granted.

23. Motion for relief from stay regarding 208 South Feltus Street, South Amboy, New Jersey on behalf of Provident Bank: Granted.

Tuesday, May 22, 2007

Adjournment of Hearing on Adequacy of Disclsoure Statement

The Debtors have adjourned the hearing on the adequacy of the Disclosure Statement from may 24, 2007 to June 13, 2007 at 10:00 am. Objections to the adequacy of the Disclosure Statement are due ten days prior to the hearing, or June 4, 2007.

Summary of 5/21 hearings

On May 21, 2007, the Court held a hearing to address the following related items:

1. Motion to Compel Rejection of Executory Contract and Grant Lien in addition to Motion for Relief from the Automatic Stay regarding 46 Zachary Way, Mt. Arlington, NJ on behalf of Frank Digirolamo: This motion was resolved by consent order whereby the Debtors shall be permitted to assume the contract for sale if the Debtors confirm a plan on or before September 30, 2007 and the plan proposes to complete construction of Mt. Arlington I. In the event a plan is not confirmed by September 30, 2007, the contract will be deeemed terminated and relief from the automatic stay will be granted to permit Frank Digirolamo to pursue any rights against any potential bonding company.

2. Motion to Assume Contract for Sale between the Debtors and Frank Digirolamo and for Authority to Sell Same: Resolved by the consent order described above.

The next omnibus hearing date is scheduled for Monday, June 5, 2007 at 1:00 pm in Trenton, New Jersey.

Summary of 5/14 hearings

On May 14, 2007, the Court held an omnibus hearing addressing the following items:

1. Motion for Relief from the Automatic Stay regarding Modular Units on behalf of GE Capital Modular Space: This motion was adjourned until June 5, 2007.

2. Motion for Adequate Protection or Relief from the Automatic Stay on behalf of Wells Fargo Financial Leasing, Inc.: This motion was adjourned until May 21, 2007.

3. Motion for Relief from the Automatic Stay regarding 82 Bryce Lane, Manahawkin, NJ on behalf of Vicki Forcier: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

4. Motion for Relief from the Automatic Stay regarding 72 Bryce Lane, Manahawkin, NJ on behalf of Irene and Kenneth Sikorski: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

5. Motion to Compel Rejection of Executory Contract and Motion for Relief from the Automatic Stay regarding 57 Bryce Lane, Manahawkin, NJ on behalf of John and Kenneth Sikorski: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

6. Motion to Compel Rejection of Executory Contract and Motion for Relief from the Automatic Stay regarding 80 Bryce Lane, Manahawkin, NJ on behalf of Christopher and Donna Escher: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

7. Motion to Sell Kara at Navesink and Kara at Freehold: Consistent with previously entered sale orders, the Court granted the Debtors’ motion to sell the assets of Kara at Navesink and Kara at Freehold. The auction is scheduled for June 26, 2007 and the final hearing to confirm the sale is scheduled for July 9, 2007 at 1:00 pm.

The next hearing date is scheduled for Monday, May 21, 2007 at 1:00 pm in Trenton, New Jersey.

Wednesday, May 09, 2007

Summary of 4/30 and 5/7 Omnibus Hearings

April 30, 2007

The Court adjourned all hearings scheduled for April 30, 2007 until either May 7, 2007 or May 14, 2007.

May 7, 2007

On May 7, 2007, the Court held an omnibus hearing addressing the following items:

1. Bond Safeguard Insurance Co. and Lexon Insurance Co.’s Motion to Compel Debtor to Assume or Reject Executory Contracts and for Injunctive Relief: This motion was adjourned until July 9, 2007.

2. Motion to Reject Executory Contract on behalf of Angelo Pantazes: This motion was adjourned until May 21, 2007.

3. Motion for Order Terminating Contract and Providing a Lien on behalf of Constance Mueller: This motion was withdrawn.

4. Motion to Compel Assumption/Rejection and to Retrieve Personal Property on behalf of Contain It, LLC: This motion was Granted with a provision providing that Contain It, LLC is entitled to file a damage claim within 30 days of the hearing date.

5. Motion to Reject Executory Contract for Sale of Real Estate on behalf of Floyd Cummins: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

6. Motion to Compel Rejection of Executory Contract on behalf of Frank DiGirolamo: This motion was adjourned until May 21, 2007.

7. Motion to Terminate Contract for Sale of Real Estate on behalf of Lojewski: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

8. Motion to Reject Executory Contract on behalf of Arvind and Sarita Grover: This motion was adjourned until May 21, 2007.

9. Motion Compelling Debtor to Assume or Reject Executory Agreement known as “Agreement for Joint Venture (Old Bridge Township Middlesex County)” dated December 2, 2004 on behalf of Michael and Georgette Hegarty and Toby Gardens, LLC: The Court ordered that the Debtor must move to assume or reject the Joint Venture within 45 days of the date of the hearing.

10. Motion to Compel Rejection of Executory Contract on behalf of Gregg and Meredith Lamb: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

11. Motion to Compel Rejection of Executory Contract on behalf of Phil Dounelis: This motion was adjourned until May 21, 2007.

12. Motion to Compel Rejection of Executory Contract on behalf of John and Virginia Heldon: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

13. Motion to Compel Rejection of Executory Contract on behalf of Mark and Deborah File: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

14. Motion to Compel Rejection of Executory Contract on behalf of Bruce and Karen Simon: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

15. Motion to Compel Rejection of Executory Contract on behalf of Janet Benz: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

16. Motion for Relief from Stay re: Escrowed Proceeds from the Sale of Four Homes on behalf of Amboy National Bank: The Debtors consented to this Motion and a consent order will be entered.

17. Motion for Authority to Obtain Credit Under Section 364(b) on behalf of Kara Homes for Final Order Authorizing Woods Landing to Incur Post-Petition Secured Indebtedness to ING Direct: The Court granted this motion authorizing the Debtors to incur up to $1,947,790 for construction financing for the property owned by Horizons at Woods Landing. As security for the contruction financing, ING Direct has been granted an additional first priority lien and security interests on the Horizons at Woods Landing property as well as a superpriority administrative claim.

The next hearing date is scheduled for Monday, May 14, 2007 at 1:00 pm in Trenton, New Jersey.