Pasquinelli Homebuilding, the once large and lucrative Chicago-based national homebuilder, has just filed Chapter 7 bankruptcy.
Pasquinelli started building in Chicago in 1956; the company eventually expanded into Indiana, Ohio, North Carolina, South Carolina, George, Florida and Texas. As of 2006, the company’s annual revenues had eclipsed the $500 million mark.
According to the Chapter 7 petition filed by Pasquinelli’s Chicago bankruptcy lawyer , the homebuilder currently has more than 10,000 creditors and $10 million to $50 million in liabilities. Despite this crushing debt, the company only has $500,000 to $1 million in assets.
The bankruptcy petition will stay all current litigation. It will also prevent Harris Bank from going forward with its claim that Bruno and Anthony Pasquinelli illegally appropriated $87 million in revenue from Pasquinelli Homebuilding between 2005 and 2009. Harris Bank filed a complaint against the Pasquinelli’s last year in Cook County, Illinois. The court dismissed the complaint. Harris had planned to re-file the suit, but that will have to wait until the bankruptcy is final.
The Pasquinelli petition adds to a long list of homebuilders whom have vanished from the Chicago construction market. As the number of petitions increase, the demand for Chicago bankruptcy attorneys will rise.