Homebuilder Tousa Files for Bankruptcy
- Jan 30, 2008
Hollywood, Fla.–Homebuilder Tousa Inc. filed for bankruptcy protection Tuesday, CNN.Money.com reports.Hurt by the continued housing decline and an increase in sales cancellations, the Hollywood, Fla.-based builder said Citigroup Global Markets Inc. will supply $150 million in financing for the reorganization. Tousa plans to use the Citigroup financing to pay suppliers and employee salaries. The company also said it anticipates finishing the 2,500 homes it has in backlog.”[Filing for bankruptcy] is necessary to reflect the realities of today’s homebuilding market,” said Chief Executive Antonio B. Mon, who cited a “dramatic downturn” that “accelerated over the last several months” as part of the problem.The company’s senior creditors, who have an agreement with Tousa to reorganize its balance sheet, will have the first chance to own the company after the restructuring.Tousa’s bankruptcy and reorganization plans involve its Newmark Homes LP, Engle Homes, Fedrick, Harris Estate Homes and Trophy Homes subsidiaries. The company’s Universal Land Title Inc., Preferred Home Mortgage Company and Alliance Insurance and Information Services will not be affected.