Home builder’s firms may sell property to repay debt

Eight companies affiliated with custom home builder John B. Kennelly will try to sell or refinance properties in Broward and Palm Beach counties to pay off defaulted debt.

The Kennelly-affiliated companies filed for Chapter 11 bankruptcy protection last year to avoid foreclosure by secured creditor BI Boca Boynton Portfolio LLC, which has a judgment exceeding $38 million.

Under a deal reached in bankruptcy court, the Kennelly companies have 11 months to sell or refinance three vacant lots in Hillsboro Beach and an unfinished gated community for 72 homes near Boynton Beach, called Enclave at Boynton Waters.

The land in Hillsboro Beach includes an 11-acre waterfront parcel at 1174-1185 Hillsboro Mile and adjacent two adjacent lots.

Bradley Shraiberg, an attorney for the Kennelly companies, told the Sun-Sentinel the properties have until mid-November to refinance, sell or develop the properties.

“We’re looking at all possibilities,” he said. “The properties are being heavily marketed. This deal gives us some breathing room.” [Sun-Sentinel] — Mike Seemuth