Mesa homebuilder files bankruptcy ahead of receivership hearing

MESA, AZ — 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.

A day before the hearing was scheduled, ZenniHome filed for liquidation bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

ZenniHome’s bankruptcy filing blocks the ongoing efforts to appoint a receiver in Maricopa County Superior Court, according to Thomas Gilson, partner and co-chair of the litigation department for Rose Law Group PC, who has no connection to the lawsuit.

Read more of this story from the Business Journal.