Levitt and Sons U.S. Trustee ordered to appoint official home deposit holders committee

By Caroline Salls

Pittsburgh, Jan. 11 - Levitt and Sons LLC's U.S. Trustee has been directed to appoint an official committee of deposit holders, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

As previously reported, an ad hoc group of deposit holders requested appointment of the official committee on Monday.

The ad hoc committee consists of a group of individuals who contracted to purchase single family homes at the Levitt and Sons-owned Seasons at Prince Creek West development at Horry County, S.C.

Judge Raymond B. Ray said he heard 30 motions filed by individual deposit creditors, with a majority seeking a refund of their deposits and rejection of their purchase contracts.

According to the motion, the issues that will likely confront the deposit holders may be at odds with the interests of official committee unsecured creditors generally.

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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