The Real Deal Miami

Wounded WCI looks back

August 11, 2008 10:37AM

An examination of WCI Communities’ path to Chapter 11 bankruptcy reorganization shows that it could have avoided the August 4 filing if it had taken a buyout offer from Carl Icahn, the company’s largest shareholder. The June 2007 offer wasn’t as bad as the board thought at the time, especially now that its stock has dropped to about 30 cents a share. Federal Bankruptcy Court Chief Judge Kevin Carey in Wilmington, Del., last week approved a relief package for WCI’s continued and uninterrupted operation, which included an agreement with its senior lenders to immediately access approximately $50 million in cash.