Federal judge approves bankruptcy plan for Majestic Hills
Observer-Reporter
This October 2018 photo shows the landslide in the Majestic Hills development in North Strabane Township that caused the condemnation and demolition of three houses.
Observer-Reporter
This October 2018 photo shows three homes in the Majestic Hills housing plan near where a landslide developed earlier that year. The three houses in North Strabane Township were later condemned and demolished.
A federal judge has approved the bankruptcy plan for Majestic Hills LLC four years after landslides in its North Strabane housing development destroyed several homes.
U.S. Bankruptcy Judge Gregory Taddonio signed off on the plan Friday that had been under negotiations for the past two years, setting the stage for the developer’s assets to be liquidated to pay creditors.
The joint bankruptcy plan was put forward by North Strabane Township and NVR Inc., the parent company of builder Ryan Homes, in April and modified over the summer before both sides agreed to the conditions last month. It was not known the financial value of Majestic Hills LLC’s assets or the length of time it could take to liquidate them.
The bankruptcy plan approval puts one chapter to rest in the story of the catastrophic landslides that began in June 2018 and ultimately forced the demolition of three homes on Majestic Drive in the development later that fall. But there remain other lawsuits and will likely be court battles over insurance payments.
David Valencik, one of the attorneys representing Majestic Hills LLC through the bankruptcy process, said the plan is complicated and extensive, so he was unsure how long it would take for the trust to liquidate the company’s assets.
Gary Sweat, the solicitor for North Strabane Township, said the “written plan” the municipality submitted to the federal bankruptcy court in Pittsburgh was what the judge ultimately approved. He referred additional questions to Pittsburgh attorney Kathleen Gallagher, who represented the township through the proceedings. Gallagher did not return a phone call seeking comment and township Manager Andrew Walz could not be reached for comment Monday.
Majestic Hills LLC, which is based in South Fayette, filed for Chapter 11 in May 2020. Other federal lawsuits brought by six homeowners impacted by the landslides were settled in January, with each party getting varying amounts from a pool of nearly $4 million, according to online court document.
Township officials previously said they had “fronted” money to pay for razing the condemned structures, stabilizing the hillside and rebuilding damaged roads in the development. Information on the total cost to the township or the amount of money it hopes to recoup was not available Monday.