I just have not been able to get a certain favorite song out of my mind tonight.
It is an old favorite by Jay and the Americans called Kara Mia.
Oops wait a second it is called Cara Mia.
Cara Mia why must we say goodbye?
Each time we part my heart wants to die
Darling hear my prayer
Cara Mia fair
I’ll be your love till the end of time
Cara Mia is a tremendous song and I hate to give away my age but it is a favorite from 1964 or so. Let’s flash forward to today’s Kara Mia.
Kara Homes Inc., one of the biggest home builders in Monmouth and Ocean counties, has filed for protection from creditors under the bankruptcy laws.
Earlier this week, at least some Kara Homes employees received a letter from the company notifying them that they were being laid off and stating that Kara “anticipates filing Chapter 11.” Under that provision of the bankruptcy code, creditors claims are frozen by the court while the company can continue to operate as it attempts to reorganize.
Nick Spaltro bought a new two-story, four-bedroom house with a gas fireplace. He has painted a few rooms. Utilities were turned on weeks ago.
The only problem is, he can’t move in.
Township Administrator Robert Czech said Kara Homes has, on numerous occasions, failed to complete site work the company said it would finish or has deviated from approved construction plans. Much of that site work remains to be done, he said.
Sidewalks remain disconnected; drainage problems have not been fixed; and, in some cases, driveways to houses have not been paved adequately, Czech said.
Although officials of Kara Homes Inc. have said the company could file for Chapter 11 bankruptcy on the heels of employee layoffs Tuesday, attorneys in the area caution home buyers under contract with the builder not to panic.
Two Shore bankruptcy attorneys said Thursday that it is likely that Kara will continue to operate and build.
Warren Brumel, a Keyport bankruptcy attorney, said Kara likely will honor the contracts it has made.
“Most of the time in a Chapter 11 case, the business is going to continue to operate,” he said, citing the Trump casinos in Atlantic City as an example.
But that doesn’t mean people should sit on their hands, said Lee D. Gottesman, a bankruptcy attorney from Dover Township.
Gottesman urged people to file a proof of claim in federal bankruptcy court if Kara files for Chapter 11. A proof of claim is a document substantiating that a creditor is owed money.
“If they sit there and do nothing, they may lose everything,” he said.
Some people might not remember a flashback to the mid 60’s. If you do, you do not have to admit it. But lets consider a flashback to a date that hopefully everyone here can remember.
Posted by the Ocean County Observer on 09/13/06
“Now that the long anticipated correction in the real estate market has occurred, both home builders and buyers are discovering opportunities created by the market shift. Zudi Karagjozi, president of Kara Homes, reported that the recent market slowdown has inspired valuable new incentives for home buyers while giving builders the chance to become more efficient.
“At Kara Homes, we’ve just completed the two most profitable quarters in the history of our company,” Karagjozi said. “We’ve taken advantage of this temporary lull to reevaluate our business plan, streamline our operation and prepare for the market recovery which some experts are predicting will begin either later this year or in the first part of 2007.”
The above snip was posted on Minyanville earlier today.
Just the Facts Maam
- On 9/13/06 Kara was bragging about completing “two most profitable quarters in the history of our company”.
- On 10/06/06 Less than one month later Kara filed for bankruptcy protection.
If anyone thinks they are going to get a huge advance warning on some of these “low PE low risk” homebuilders please consider the above facts.
Kara Mia why must we say goodbye?
Mike Shedlock / Mish/