Trustee Takes Charge
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Updated: 11:00 PM Mar 28, 2006
Trustee Takes Charge
Name of trustee to be announced Wednesday
A U.S. bankruptcy judge decided to let a trustee take over Benchmark Homes and several attorneys involved say it's the most efficient way to sell the company's remaining houses.
Posted: 8:07 PM Mar 28, 2006
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A U.S. bankruptcy judge decided to let a trustee take over Benchmark Homes and several attorneys involved say it's the most efficient way to sell the company's remaining houses.

The attorneys say any other way would cause complete chaos.

The trustee's main objective is to turn the houses into cash and work to complete the unfinished homes. It's still uncertain whether those who built the houses on their credit will ever be paid for it.

With more than 150 Benchmark Homes in the metro area either ready to be sold or in need of work to prepare them for sale, dozens of contractors and sub-contractors are owed money for work already done.

There are $10 million worth of bills.

Attorneys say it's possible that everyone will be paid. From the sale of four recent Benchmark Homes, there was $67,000 left over for lien-holders on the first, $23,000 for the second, $59,000 for the third and $4,000 for the fourth.

That comes to $153,000 that would be available for everyone but the banks.

"For all the creditors, there are still a lot of things to be done," said Donald Swanson, who represents the unsecured creditors. Those are the people who actually build the homes.

He says the profits on the other homes may not be as high since many of those need to be finished, which will cost the buyers more money.

The name of the trustee is to be announced Wednesday.

Channel 6 News Features