From: Lisa Thomas <lisa.thomas@ neumannhomes. com>
Date: Feb 1, 2008 8:46 AM
Subject: Bankruptcy Sale
To:

Neumann Homes

BANKRUPTCY SALE

2 LOCATIONS

4355 Weaver Parkway

Warrenville, Illinois

OFFICE EQUIPMENT, FURNISHINGS & SUPPIES

Friday, February 15^th

Noon – 7 p.m.

&

Saturday, February 16^th

7 a.m. – Noon

• Office equipment including: computers, monitors, fax machines, printers, copiers, audio video equipment, phones, etc.
• Office furniture including: desks, chairs, filing cabinets and shelving.
• Office supplies including: training books, binders, folders, organizational & desk supplies

************ ********* ********* ********* ********* ********* ********* ********* ********* ********* **

900 A. Knell Road

Montgomery, IL

OFFICE FURNITURE & MODEL HOME FURNISHINGS

Saturday, February 16^th

7 a.m. – Noon

Everything must be removed on the day of sale.

  CASH & CARRY ONLY

We’ve been wondering why Neumann Homes hadn’t filed earlier will be addressed later today by Kenneth Neumann, the CEO of Neumann Homes.

According to reliable sources, Kenneth Neumann, the CEO of Neumann Homes, is planning to force the home buyers to purchase the Neumann Homes. With reports of shoddy building of the houses, many families are opting to forgo purchasing the Neumann houses and are attempting to receive their earnest money back.

In many cases, Neumann Homes had violated the purchase contract by not finishing the homes within 150 days of the issuance of the building permits (paragraph 12). The contract states in paragraph 21 sub paragraph A:

• Negotiation:
  • When either party feels a dispute has arisen, that party shall notify the other party in writing of the nature and details of the dispute (“Dispute Notice”). Within fifteen (15) days after such Dispute Notice, a meeting shall be held between the parties to begin a good faith attempt to negotiate a resolution. During this procedure the parties will communicate directly with each other in an effort to reach an agreement that serves the interests of both parties.

All of the real estate lawyers I’ve asked, if either party does not respond to the Dispute Notice, the requirement of Mediation and Mandatory Binding Arbitration is no longer binding. The most that Neumann Homes is likely to be able to do is to keep the earnest money but even that is questionable.

Neumann in Chapter 11

October 22, 2007

BY DAVID ROEDER droeder@suntimes.com

The crash in the Chicago-area market for new homes has claimed its biggest casualty. Suburban builder Neumann Homes Inc. said Monday it will file for bankruptcy and has laid off most of its employees.

Warrenville-based Neumann blamed its predicament on a drop of more than 50 percent in annual sales within the Chicago and Denver markets. It also pointed to a decision in 2005 to invest in the Detroit market, a move it said cost the company more than $60 million.

….
Read more at the Chicago Sun Times

To say that I’m a bit upset is a bit of an understatement.

Corresponding articles at Chicago Tribune, WBBM News Radio, Chicago Daily Herald, Crain’s Chicago Business News and a second article at Crain’s Chicago Business News.

For those of you that don’t know chapter 11 bankruptcy is a restructuring of the company.