Renovate America Approved to Sell Assets, Wind Down in Bankruptcy

Home improvement loan provider Renovate America Inc. won court approval to wind down in bankruptcy after an earlier sale of a business unit.

The companies’ Chapter 11 plan, approved during a hearing Friday, creates a liquidating trust that will sell the remaining assets. Personal Energy Finance Inc., a Renovate America affiliate that’s also a debtor in the bankruptcy case, already sold its “Benji” home improvement financing business to Finance of America Mortgage LLC for $5.35 million in March.

The trust will oversee distribution of the sale proceeds to the company’s creditors.

Homeowners with unsecured claims are expected to recover ...