A publicly held company headquartered in New York said it plans to buy the assets of an Oahu factory-built housing company for $1.1 million. Hawaiian Palisade assets
attract another suitor
By Russ Lynch
rlynch@starbulletin.comHousing Solutions Hawaii Inc., formerly known as JSDC Inc., did not name the assets it intends to acquire, but said the deal covers a factory and nine partially completed homes. The only Oahu business that fits that description is Hawaiian Palisade Homes Inc., which attempted a reorganization under Chapter 11 of the bankruptcy law but was ordered into a Chapter 7 liquidation early in October.
Such a sale would need bankruptcy court approval and as of late yesterday there was no motion on file seeking that approval.
An effort in August to sell the business to California-based Westlink Group for $1.5 million was not completed. In October, Judge Robert Faris ruled the reorganization effort had run its course and whatever assets the company had should be sold.
Housing Solutions Hawaii appeared Thursday as a potential buyer of the main assets, the factory at Campbell Industrial Park in Kapolei and the unfinished houses. In a press statement, the company said it expects to complete the sale in mid-January.
The trustee assigned by the court to sell off the assets, Mary Lou Woo, could not be reached for comment yesterday.
Hawaiian Palisade battled with unions and the U.S. Housing & Urban Development department for two years before getting its factory and its homes approved.
In July, the state Office of Consumer Affairs sued the company, charging that it misled consumers and government agencies. At that time, the department said, the company had contracts to sell 170 houses but had built only 13.
Housing Solutions Hawaii trades on the Pink Sheets under the symbol HSHI.
