A Chicago-area developer with residential projects in Lakemoor and Woodstock has filed for bankruptcy protection.
The Kirk Corp. voluntarily filed for reorganization under Chapter 11 Bankruptcy code this week. However, the company expressed confidence that the filing won’t affect projects in the works – good news, city officials said.
“If it was bankruptcy where they were closing their doors and leaving, then we would be concerned,” said Derik Morefield, Woodstock deputy city manager. “But from the information we see so far, they still plan on fulfilling their commitments.”
Kirk Corp. is the developer behind two area projects: Apple Creek Estates in Woodstock and Fields of Rockwell Place in Lakemoor.
The Woodstock development is southwest of the intersection of Routes 14 and 47, and the Lakemoor development is northwest of the intersection of Routes 12 and 120. Both developments include single-family homes and town houses.
Morefield said the Woodstock development was in its first phase of construction. Nineteen units have been built so far, and 17 of those are completed and awaiting final inspections. None of the units are occupied, he said.
Still, the city is optimistic that the project will continue.
“They have every intention of continuing their operations here in Woodstock to build homes, maintain property out there, and obviously deal with existing customers,” Morefield said.
Beyond the Lakemoor and Woodstock developments, Kirk Corp. also is behind projects in Bolingbrook and Hoffman Estates.
Kirk Corp. CEO John Carroll said in a company statement that the filing would strengthen the employee-owned company’s financial position.
“We are confident that the reorganization process gives us more opportunity to work with our lenders ... and to secure additional financing, which will allow us to continue building high quality homes,” Carroll said.