Bankrupt Neumann Homes seeks $135,000 in Antioch building fees

ANTIOCH -- Neumann Homes Inc., the bankrupt developer of The Clublands and NeuHaven subdivisions, wants $135,000 in permits and fees it paid to build homes that were never built.

Village Administrator James Keim said he got word of the suit Monday morning. Antioch is one of two dozen municipalities being sued by Neumann Homes.

Antioch trustees discussed the details of the pending litigation in executive session after Monday night's Village Board meeting to decide how to proceed, Keim said.

According to the developer's suit, the fees were fraudulent transfers because the homes weren't constructed, thus conferring no value on the homebuilder.

Warrenville-based Neumann filed under Chapter 11 in November 2007.

Keim said the village has paid out about $500,000 in staff time working on behalf of homeowners in both subdivisions. The village also hired its own legal counsel to obtain funds from the two banks that took over the developments to resolve unfinished public improvements.

"It's just one more chapter in this ongoing saga with Neumann Homes," Keim said.

At the time of the bankruptcy, Neumann Homes was one of the 10 largest homebuilders in the Chicago area. In the bankruptcy, the company listed assets of $291.8 million and debt totaling $286.9 million, including $151.1 million in secured debt.