Sandstone bankruptcy halts Kayenta damages hearing
Courtesy | Sandstone Housing
A home in Teeh In Deeh Estates is shown in Kayenta. The subdivision is at the center of Kayenta Township’s long-running case against Sandstone Housing Corp., which filed for Chapter 11 bankruptcy on April 17.
WINDOW ROCK
Fort Defiance Housing Corporation, the nonprofit landlord that does business as Sandstone Housing Corp. and runs the Dineh Utility cooperative, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Arizona on April 17, halting a damages hearing set for May 5 in Kayenta District Court.
Sandstone’s bankruptcy filing, served on the Kayenta Township and the court on April 20, invokes the automatic stay under Chapter 11, freezing most civil actions against a debtor while the bankruptcy proceeds. The petition lists an estimated 200 to 999 creditors, between $10 million and $50 million in liabilities, and between $100 million and $500 million in assets. It was signed by Sandstone CEO Shelby Garcia.
For the Kayenta Township Commission, which sued the corporation more than six years ago over conditions at its 260-home Teeh In Deeh Estates subdivision, the timing stood out.
“None of the damages had been issued by the court yet,” Township Manager Jarvis Williams said of the filing.
To read the full article, please see the April 23, 2026, edition of the Navajo Times.
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