Marlborough builder files for bankruptcy

MARLBOROUGH — Half a year after it went out of business, Chelsea Modular Homes has filed for bankruptcy.

The Chapter 7 petition filed last month in U.S. Bankruptcy Court in Albany lists a staggering $9.6 million in liabilities and just $393,534 in assets.

The filing was prompted by mounting litigation against the company, which is the defendant in at least a dozen lawsuits, most of them for breach of contract or failure to pay debts.

“The main benefit of the filing is it puts everyone on notice of the shutdown of the business “¦ and stops those lawsuits from either being brought or going forward,” said Frank Brennan, the company’s lawyer.

Owner Tim Hourihan has not returned calls seeking comment.

The company’s assets include several trucks, office equipment, machinery and improvements to the building the company leased on Riverview Drive. The property itself, including two buildings totaling more than 100,000 square feet, is worth about $3.6 million, according to town assessment records. But the property isn’t owned by Chelsea Modular Homes, so it doesn’t show up as an asset in the bankruptcy case.

http://www.recordonline.com/apps/pbcs.dll/article?AID=/20090313/BIZ/903130343/-1/COMM0310

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