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   BANKRUPTCY INFORMATION

City Homes, Inc. and certain of its affiliates (“City Homes”) filed for Chapter 11 bankruptcy and confirmed a joint Chapter 11 Plan. The provisions of the Plan are binding on all creditors and may affect your rights. A copy of the confirmed Plan can be accessed by clicking on the hyperlink below.

The Plan provides that Lead-Paint Claimants are entitled to initiate, continue and/or prosecute their Lead-Paint Claims in the non-Bankruptcy Court tort system against the Debtors and the Reorganized Debtors for the purpose of establishing the Debtor(s)’ liability for such Lead Paint Claims. Nevertheless, the right of a Lead-Paint Claimant to recover on or enforce such a Claim against the Debtors and Reorganized Debtors is limited to the proceeds of Lead-Paint Insurance Policies applicable to its Lead-Paint Claim. The availability of insurance coverage for particular claims varies from year to year and may or may not be available to cover a particular Claim. However, any Lead-Paint Claimant may elect to participate in the Voluntary Lead-Paint Claim Compensation Fund (described below) in lieu of pursuing his/her Lead-Paint Claim against the Debtors and Reorganized Debtors in the tort system. The election to participate in the Voluntary Lead-Paint Claim Compensation Fund shall be in the sole discretion of each Lead-Paint Claimant.

The Voluntary Lead-Paint Claim Compensation Fund will be funded with a minimum sum of Four Hundred Fifty Thousand Dollars ($450,000). To participate in the Voluntary Lead-Paint Claim Compensation Fund a Lead- Paint Claimant must provide to Zvi Guttman, the Chapter 11 Plan Trustee, on or before May 30, 2020, a completed and executed Voluntary Lead-Paint Claim Compensation Fund claim form which can be accessed by clicking on the hyperlink below. The Claim must set forth (a) residency or significant periods of time spent at a property owned by any Debtor, other than Johnston Square and Royalton, and the dates of residency or significant periods of time spent there; and (b) an elevated blood lead level of at least 5ìg/dl at or about the time of the Claim Holder’s residency at a property owned by a Debtor or the time spent there, with documentation evidencing such blood level and the date of the test.

As soon as reasonably practicable after the resolution and determination of all timely filed Lead-Paint Claims the Plan Trustee shall pay each such Holder of an Allowed Lead-Paint Claim such Claimant’s equal pro rata share of the Voluntary Lead- Paint Claim Compensation Fund, calculated by dividing the amount of the Voluntary Lead-Paint Claim Compensation Fund by the number of timely filed Allowed Lead-Paint Claims. Holders of Lead-Paint Claims participating in the Voluntary Lead-Paint Claim Compensation Fund shall receive no further payment under the Plan, and such Holders are permanently enjoined from commencing or continuing the prosecution of the Holder’s Lead-Paint Claims against the Debtors and Reorganized Debtors in any court.

For more information please call (443) 738-5263 or send an email to CityHomesBankruptcy@gmail.com. You may wish to consult an attorney regarding these matters.


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