Levitt and Sons debtors granted interim access to $3.5 million DIP

By Caroline Salls

Pittsburgh, Jan. 14 - Several Levitt and Sons LLC debtors obtained interim access to a $3.5 million debtor-in-possession facility from Wachovia Bank NA, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

The final hearing is scheduled for Jan. 23.

The debtors covered under the DIP agreement include Levitt and Sons of Cherokee County, LLC; Levitt and Sons of Hall County, LLC; Levitt and Sons of Paulding County, LLC; Levitt and Sons of Horry County, LLC; Levitt and Sons of Manatee County, LLC; and Levitt and Sons at World Golf Village, LLC.

The $3.5 million revolving line of credit can be increased to $10 million with the permission of the lender and a chief project administrator that must be hired under the DIP agreement.

The DIP facility will mature in 23 months.

Interest will be Libor plus 350 basis points.

Levitt and Sons must pay a $7,500 monthly administrative fee and a commitment fee of 300 bps of a $105,000 credit amount.

According to the motion, proceeds will be used to resume housing construction and sales. Net sale proceeds will be used to pay on the loan.

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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