Village Homes, a Fort Worth homebuilder that has put up 1,500 houses across the metro since 1996, has officially emerged from Chapter 11 bankruptcy after a federal court approved its reorganization plan. The exit comes more than nine months after the company filed for bankruptcy protection and follows a court fight in which a competing builder tried to derail the process entirely.
According to the Fort Worth Star-Telegram, Village Homes filed for Chapter 11 after a 2024 deal to sell its company-owned lots and assets to a rival builder fell apart when that buyer failed to close the purchase. The paper reports that the resulting litigation created problems for Village Homes as it tried to sell its properties, ultimately pushing the company into bankruptcy protection last October.
Company co-founder and president Michael Dike said the Chapter 11 filing became necessary to protect the business and the people who depend on it, per the same account. The federal court ultimately ruled that Village Homes could sell its properties and overruled objections raised by the same buyer whose failed 2024 deal had triggered the dispute in the first place.
Judge Finds Rival Buyer Sought to Block Reorganization
The court went further than simply rejecting the objections. It found that the proposed buyer — described as a competitor of Village Homes — intended to prevent the builder from reorganizing at all, the station’s report indicates. Under federal bankruptcy procedure, any creditor or party opposing a Chapter 11 plan must file formal written objections ahead of the confirmation hearing, a process outlined by Fried Frank, which the judge in this case ultimately overruled…