By Angela Gonzales | Phoenix Business Journal
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.
Thomas A. Gilson, co-chair of Rose Law Group’s litigation department tells RLGR: “A day before the hearing was scheduled, ZenniHome filed for liquidation bankruptcy in the U.S. Bankruptcy Court for the District of Delaware,” which “blocks the ongoing efforts to appoint a receiver. If appointed, a receiver would have been empowered to preserve Zenni’s assets and equipment while the lawsuit moved forward. Not only does the filing stop the appointment of a receiver, it shifts the dispute from superior court to bankruptcy court, where there will be a different pace and focus.”