Court Findings Affirm Company’s Financial Strength, Credibility, Strong Reputation, and Lender Support, Clearing the Way for Its Next Chapter
(Fort Worth, Texas) — On July 23, 2026, Village Homes of Fort Worth successfully emerged from Chapter 11 following federal bankruptcy court approval of its reorganization plan. The court’s findings affirm the strength of the underlying business and confirm Village Homes’ position from the outset that the filing was driven by the operational impact of a legal dispute, rather than weakness in the business itself. With the plan confirmed, the company has preserved its existing ownership and leadership, and restored its full freedom to operate under the plan without the court’s oversight.
In 2024, Village Homes entered into an agreement to sell company-owned lots and related assets. Village Homes maintains that the proposed buyer failed to close. Litigation followed, and the buyer filed lis pendens notices against the properties. Those notices, which were filed in the county real estate records, created significant barriers to selling, financing, and developing the affected lots, leading Village Homes to seek Chapter 11 protection on October 1, 2025 to allow it to continue its business and repay its creditors.
In confirming the company’s reorganization plan, the court has ruled that the lis pendens are ineffective against the reorganized company and has authorized Village Homes to sell its properties free of any rights asserted under the sales agreement by the buyer. The court’s order also overruled in full the objections raised by the buyer, finding the objections lacked merit and the credible evidence strongly suggested they were intended to block the company from reorganizing and emerging as a going concern. The court further found that the objecting party was a direct competitor of Village Homes.
“Chapter 11 was not a path we wanted to take, but it became necessary to protect the business and the people who depend on us,” said Michael Dike, co-founder and president of Village Homes. “We defended the company throughout this process, and the court’s order bears out what we have maintained from the beginning — about the strength of Village Homes, the circumstances that forced us to seek Chapter 11 protection, and our ability to come through it successfully.”
The court also found Village Homes solvent, its financial projections credible, and its reorganization plan feasible. All seven of Village Homes’ secured lenders voted in favor of the plan. Worthington Bank Executive Chairman Greg Morse also testified in support of the company and its reorganization plan, expressing confidence in its budgets and projections and describing Village Homes as a creditworthy customer with a “tremendous reputation.”
“The support of our lenders has meant a great deal to us throughout this process,” Dike said. “They understood that this was not a lender-driven filing and that the underlying business was always viable. Their confidence gave us the ability to keep operating, keep building, and keep looking ahead.”
Despite the added legal and administrative work, Village Homes has continued building and selling homes throughout the Chapter 11 process — a tangible sign of the confidence customers, contractors, and vendors maintained in the company.
“When people understood the facts, they understood what was happening and were comfortable moving forward with us,” said Janet Bishop, Village Homes director of sales and marketing. “We have worked hard to earn the trust of our customers and communities, and the people who work alongside us. To have them hold onto that trust has meant more than we can say.”
The company is marking its 30th anniversary this year, a milestone for Dike and his longtime business partner James R. Harris. Founded in 1996, Village Homes has built more than 1,500 homes across Fort Worth and Parker County and has longstanding relationships with local architects, craftsmen, trade contractors, vendors, and lenders.
“We emerged with our company and our relationships intact — exactly as we said we intended to do from the start,” Dike said. “Now we can put our full focus back where it belongs: building homes, serving our communities, and carrying Village Homes’ 30-year legacy into the next generation.”
ABOUT VILLAGE HOMES Since its founding in 1996, Village Homes of Fort Worth, Texas has earned a reputation for building unique and inspiring homes that combine modern livability with classic architectural character and quality. Now entering its fourth decade in business, the company has helped make the dreams of over 1,500 homeowners come true, while sharing close relationships with the area’s finest architects, craftsmen, trade contractors, and vendors.
For more information, visit homesofcharacter.com.
