Levitt and Sons disclosure statement gets final approval; plan confirmation hearing to begin Feb. 19

By Jennifer Lanning Drey

Portland, Ore., Dec. 23 - Levitt and Sons LLC was granted final court approval for the second-amended disclosure statement for its plan of liquidation Tuesday from the U.S. Bankruptcy Court for the Southern District of Florida, according to a source familiar with the case.

The approval was granted following the filing of amendments to the disclosure statement specifying that creditor Wachovia Bank NA's secured claim will be treated in accordance with the debtor-in-possession agreement, and its unsecured claim will be treated as a general unsecured claim, according to court documents.

Wachovia now supports the plan, according to the amendment filing.

The plan confirmation hearing is scheduled for Feb. 19 and Feb. 20.

Creditor treatment

As previously reported, creditor treatment under Levitt and Sons' most recently filed plan of liquidation includes:

• Holders of administrative expense claims, priority tax claims and priority claims will be paid in full in cash;

• Holders of Bank of America NA and KeyBank secured claims will receive either the proceeds of the sale of the collateral securing their claims or the return of the collateral;

• Holders of AmTrust Bank (Hartwood Reserve) secured claims will be paid in full from the proceeds of collateral sales, paid in full in exchange for a discharge of the collateral securing the claims, or satisfied through the return of the collateral;

• Holders of Wachovia Bank NA secured claims and Wachovia post-bankruptcy debtor-in-possession financing secured claims will be paid in accordance with the DIP agreement;

• Holders of other secured claims will receive the proceeds of the sale of the collateral securing the claims or return of the collateral, to the extent that the collateral has not been previously sold or abandoned;

• Holders of general unsecured claims will receive a share of cash remaining after payment of administrative, priority and secured claims;

• Holders of subordinated claims will receive a share of any available cash after all other claims have been paid in full and resolved; and

• Holders of equity interests will receive no distribution under the plan.

Levitt and Sons, a Fort Lauderdale, Fla.-based homebuilding subsidiary of Levitt Corp., filed for bankruptcy on Nov. 9, 2007. Its Chapter 11 case number is 07-19845.

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