After pleading guilty to a bid-rigging scheme in the late 1990s, interior construction company Lehr Construction Corp. is again the subject of a state investigation into the alleged illegal activities of the interior construction industry as a whole. Citing the ongoing investigation and the continuing struggles of the real estate market, Lehr has been forced to file for Chapter 11 bankruptcy protection in order to protect its clients and subcontractors and to finish current projects.
Lehr Construction is a New York City-based interior construction company that was established over 30 years ago. Now, it has filed for bankruptcy in the face of $18.5 million in unsecured claims, with creditors including Capitol One Bank and several New York subcontractors, including Manhattan-based Superior Acoustics Inc. and Robert B. Samuels Inc.
According to a spokeswoman for the company, Lehr executives had those subcontractors in mind when it made the decision to file for bankruptcy. In a statement, the spokeswoman said that the Chapter 11 filing is intended "to protect the company's clients and subcontractors and give them the ability to complete all the projects the firm is committed to, on time and on budget."
Lehr Construction is certainly not the only business of its kind that has been forced to file for bankruptcy because of the recession. The continuing decline of the real estate market and the tightening of the credit market has forced many construction companies into deep debt and bankruptcy. In addition, an ongoing investigation into the interior construction industry has made Lehr the subject of some bad press, which has undoubtedly hurt its already struggling business.
Posted by the Law Offices of Joseph C. Perez
http://www.bronxbankruptcyblog.com
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