New Jersey-Based Kara Homes
Files for Chapter 11 Protection

New Jersey real-estate developer Kara Homes Inc. filed for Chapter 11 bankruptcy protection, reporting debts of nearly $297 million.

A series of building-materials suppliers top the list of unsecured creditors in Kara Homes' bankruptcy, led by A-1 Bracket of Morrisville, Pa., and Strober Building Supply of Haddonfield, N.J.

Kara Homes' assets were listed as $350 million in the petition the East Brunswick, N.J., company filed Thursday in a New Jersey bankruptcy court.

Founder and president Zudi Karagjozi signed the bankruptcy filings for the company and is listed as a co-debtor, liable for Kara Homes' debts.

In 2002, Kara Homes was named the fastest-growing home builder in the U.S. by Builder Magazine, an industry publication.

Marketing materials available online say Kara Homes is a quality builder of luxury homes, single-family homes, town homes and adult communities throughout New Jersey. Prices for some Kara Homes topped $1 million.

An executive of the company was not immediately available to comment on reasons for Thursday's bankruptcy filing.

The Woodbridge, N.J., law firm of Greenbaum, Rowe, Smith and Davis is representing Kara Homes.

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