Judge greenlights forced bankruptcy of Henderson’s Inspirada
In a setback to KB Home and other builders, a federal judge in Las Vegas has declined to stop the involuntary bankruptcy of the 1,950-acre Inspirada, a $1.5 billion Henderson master-planned community also called South Edge.
U.S. District Judge Philip Pro on April 28 affirmed an earlier decision by bankruptcy Judge Bruce Markell, who refused to stop the bankruptcy case.
JPMorgan Chase Bank, Wells Fargo Bank, and Credit Agricole Corporate and Investment Bank are creditors of South Edge.
Pending a possible appeal to the 9th Circuit Court of Appeals, Markell will proceed with South Edge's Chapter 11 bankruptcy. KB Home Nevada Inc. owns a 48 percent stake in the development.
KB Home spokesman Craig LeMessurier said in an email that the builder will appeal the judge's ruling.
"The Inspirada community is one of KB Home Nevada's premier communities in Las Vegas, having delivered 569 homes there since its opening in 2007," he said. Other South Edge builders include Coleman-Toll Limited Partnership, Pardee Homes of Nevada, Meritage Homes of Nevada and Beazer Homes Holding Corp. Focus South Group also held an ownership stake.
A total of about 700 attached and single-family homes have been built in Inspirada, said Dennis Smith, president of Home Builders Research.
Approved in 2005, the development was initially planned as a cutting-edge neo-traditional village of nearly 29,000 residents in 11,500 homes south of the Henderson Executive Airport.
