Hollywood, Fla.-based home builder Tousa is one step closer to end of its litigious bankruptcy case after receiving the first set of approvals for its Chapter 11 liquidation plan yesterday, Law360 reported.
U.S. Bankruptcy Judge John K. Olson agreed to give the go-ahead for the disclosure statement. Revisions had been made after the U.S. Trustee’s Office said the statement was too vague. First-lien revolver claims of $16.6 million would see a 50 percent recovery from Tousa, and first-lien loan claims of $206.2 million would see a 56 percent recovery, according to the proposed plan cited by Law360.
Second-lien term loan claims of $320.4 million, however, would see a 4 percent recovery, and second-lien note claims of $573.5 million would see a 58 percent recovery, the plan said.
The company filed for bankruptcy protection in January 2008 with $2 billion in debt, as previously reported. It transitioned from built-to-order new sales and construction starts to closing sales of homes that were already under construction. In May, it changed its mind sought liquidation, Law360 said. [Law360] –Mark Maurer