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Dunmore Homes' Chapter 11 case transferred to California court
By Caroline Salls
Pittsburgh, Jan. 14 - Dunmore Homes, Inc.'s Chapter 11 bankruptcy case has been transferred to the U.S. Bankruptcy Court for the Eastern District of California, according to a ruling filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.
The venue transfer motion was filed by Dunmore creditors Cal Sierra Construction, Inc., Pacific Paving Co., Inc. and Valley Utility Services, Inc.
According to the motion, the company "has no present domestic business activity or presence outside of California."
In addition, the creditors said all of Dunmore's subsidiaries, substantial assets, employees and largest secured creditor are located in California, as are 18 of its 20 largest unsecured creditors.
The creditors said Dunmore Homes, Inc. did not exist until 90 days before the bankruptcy filing.
Before Sept. 10, the company's subsidiaries and other assets were owned by Dunmore Homes, a California corporation, which was wholly owned by Sidney B. Dunmore, the motion said.
However, on Sept. 10, Dunmore California sold all of its assets to the newly formed Dunmore Homes, Inc. for $500 and the assumption of all liabilities.
Dunmore Homes, Inc. is classified as a New York corporation, but it is wholly owned by California resident Michael Kane, according to Monday's ruling.
"This case involves a newly formed entity that received an assignment of control of an exclusively California-based homebuilding company on the eve of bankruptcy for the grand sum of $500," the creditors said in the motion.
Dunmore Homes, a Granite Bay, Calif., homebuilder, filed for bankruptcy on Nov. 8 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 07-13553.
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