Builder Files for Bankruptcy
A central Arkansas builder says the state of the economy is forcing him to file for bankruptcy. AK builders turned in the paperwork this week. One family says they have questions for the company about the new home they just moved into."It's been a disaster ever since we closed," a new Shannon Hills resident said.She didn’t want to be identified. Soon after she and her husband moved into their new home from Florida, this year, they say bad news followed."We've been personally served a lien notice…that they're filing a lien on the house. We're responsible for AK's debts,” the resident said.AK is the company that built her home. But news broke just this week AK Builders, which brought so many homes to Saline County, has now filed for bankruptcy right in the middle of construction of several new homes.Someone removed the signs from the homes in the Shannon Hills subdivision. The company has even removed signs from its main office."They started construction on this about three years ago and now there are about 300 homes up here and they are upscale homes," said Shannon Hills Mayor Larance Davis.Davis says he's surprised to hear the company filed for bankruptcy. We asked what it meant for new homes that were already in progress."I've already been told they are going to finish those other eight homes. I believe Jody Petty and his associates are," Davis said.Realtor Jody Petty sold homes for AK before the company's financial turmoil. He told us due to AK's current issues, he would have to seek legal counsel before deciding to take over all of the homes AK started.Legal action may be in the works for many homeowners as well."I’m just shocked. Trying to take it step by step," the angry resident told us.An AK Builders representative denied an on-camera interview request, only saying quote "times are hard." The company's attorney James Dowden told us the filing is a result of the housing slowdown. He said he had no official statement, at this time, other than saying "unfortunately this happens."
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