Levitt and Sons debtor seeks approval of $460,000 DIP to complete home construction

By Caroline Salls

Pittsburgh, Dec. 13 - Levitt and Sons, LLC debtor Regency Hills by Levitt and Sons, LLC has obtained a commitment for up to $460,000 in debtor-in-possession financing from AmTrust Bank.

Regency Hills will be the borrower and Levitt and Sons will be the guarantor on the DIP.

According the a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Florida, a portion of the DIP proceeds will be used to complete construction on 10 homes in Regency Hills' Hartwood Reserve residential project in Lake County, Fla.

The DIP will also be used to fund a $75,000 interest reserve and other costs and expenses.

Interest will be Prime rate plus 5%.

The DIP will mature in 180 days.

The company has requested a Dec. 19 hearing.

Levitt and Sons, a Fort Lauderdale, Fla.-based homebuilding subsidiary of Levitt Corp., filed for bankruptcy on Nov. 9. Its Chapter 11 case number is 07-19845.

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