Kimball Hill receives 60-day extension to submit recovery plan

Kimball Hill Inc., the third-largest U.S. home builder in bankruptcy, received a 60-day extension of its deadline to file a recovery plan.

U.S. Bankruptcy Judge Susan Sonderby in Chicago Tuesday gave Kimball Hill until Oct. 20 to submit a plan. Kimball Hill sought a 90-day extension, saying it needed more time to negotiate with creditors. Its exclusive right to submit a plan was set to expire Aug. 21, the company said in papers filed July 29.

"Without exclusivity, the debtors' resources would no doubt be pulled in unproductive directions such that the value of the estates would quickly dissipate to the detriment of all creditors and parties in interest," Kimball Hill said.

Kimball Hill, based in Rolling Meadows, sought court protection April 23, citing tumbling demand for homes. The bankruptcy petition listed assets of $795.5 million and debt of $631.9 million as of Dec. 31.