Fulton Homes files for Chap. 11

by KTAR Newsroom (January 27th, 2009 @ 5:22pm)

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Tempe-based company Fulton Homes, one of Arizona's largest home builders, filed for Chapter 11.

Fulton Homes has over 200 employees, some of whom called into the KTAR Newscenter and said they were surprised by the filing.

Chapter 11 typically allows a business to stay in operation, said Scottsdale bankruptcy attorney Irena Makeeta-Juras.

"No creditors can go and collect any debt, and the debtor has some time to propose a plan for the organization, usually within several months," Makeeta-Juras said.

It's also important for homeowners and potential homebuyers to know that when a company files for bankruptcy protection, they can no longer rely upon their contract.

"The contract can be either assumed or rejected. A basic part of the organization is going to be whether this contract is going to be kept or assumed, or whether they no longer want the contract," she said.

The company's founder, Ira Fulton is on a list of most generous philanthropists.

BusinessWeek ranked Fulton 36th on their list of top 50 a couple of years ago.

Fulton and his wife have donated approximately $265 million dollars to a variety of organizations, approximately 60 percent of their net worth, according to BusinessWeek.

Major recipients include Arizona State University and Brigham Young University.

Last 4 Comments

• 0 Reply Abuse Vote

  Most MAJOR Cracking Doesn't Start

  D M

  Until the home is at least 5-10 years old. I live in a Fulton Home and the warranty covered cracks on the outside of the house (as long as you could slide a DIME in them) for the FIRST 2 YEARS. Fulton DID come out and patch up and repaint SOME of those cracks, NOT ALL. Now that the home is a bit older (7 years), there are also many cracks INSIDE the home - ceilings and yes, even WALLS. Sure a house "settles," but sorry, your home shouldn't be falling apart after 7 years. I'm with the first poster - you don't know until you live in a Fulton Home.

  700
• 0 Reply Abuse Vote

  New Home Builders

  Jamsan

  I have split feelings on this. They added inventory when we thought we required additional homes. Many of the builders have been in business for over 50 years. They have seen crazy markets, so they should have been wise, and built out their lots, and then sat on the side until the numbers lined up to buy more land. These builders made huge profits during the boom. They are getting ready to get a tax adjustment that allows them to go back X years and write off their loses from these last couple of years. People when do you buy? In a buyers' market. When do you sale? In a sellers' market. Well many people and businesses ignored these simple rules and bought in a sellers' market. Now, all of them are just bailing on their mortgages and credit cards, and lines of credits, and tanking our country. http://www.AzForeclosurelistings.com/wordpress more topics on real estate and our economy. It welcomes all.

  690
• 0 Reply Abuse Vote

  No Bailouts

  Jshope

  I'm tired of companies who figure it is THEIR PERSONAL money and success when the profits are good. But, then when times are tough, they want sympathy and assistance from others. -- (Much of Fulton's philanthropy came with strings attached to ensure his name would be prominently displayed).

  659
• 0 Reply Abuse Vote

  Couldn't happen

  JackBauer

  to a nicer company! Everyone in our Fulton neighborhood has cracks in their homes that you can slide quarters in, but all Fulton says is their normal setting cracks and not covered. Same goes for the foundations. Probably had to file to protect themselves from all the class action suits. I hope Chris and Jeff are the 1st to go.

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