Kara Homes seeks $5M loan to keep operating
Bankrupt builder Kara Homes Inc. wants to borrow $5 million from a hedge fund, money that the company would use to stay afloat and finish the construction of some homes that are close to completion.
The loan from Plainfield Special Situations Master Fund Ltd., a hedge fund based in Greenwich, Conn., will be the subject of hearing before U.S. Bankruptcy Court Judge Michael B. Kaplan on Tuesday.
East Brunswick-based Kara filed for Chapter 11 bankruptcy Oct. 5, saying the real estate market downturn prevented it from paying its debts. The company reported $350 million in assets and $227 million in liabilities.