Mesa homebuilder files bankruptcy ahead of receivership hearing

Mesa-based ZenniHome LLC filed Chapter 7 bankruptcy papers the day before a scheduled court hearing on an application for appointment of a receiver related to a lawsuit.

Indigenous Design Studio + Architecture LLC, which filed suit against ZenniHome earlier this year alleging misuse of $22 million in federal funds related to a modular housing project, had filed a receivership application in Maricopa County Superior Court, seeking the appointment of an independent receiver to take possession and control of ZenniHome’s assets, records, accounts and financial information.

A day before the hearing was scheduled, ZenniHome filed for liquidation bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

ZenniHome’s bankruptcy filing blocks the ongoing efforts to appoint a receiver in Maricopa County Superior Court, according to Thomas Gilson, partner and co-chair of the litigation department for Rose Law Group PC, who has no connection to the lawsuit.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.

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