Court denies Levitt and Sons creditor's DIP loan approval reconsideration request

By Caroline Salls

Pittsburgh, March 31 - Levitt and Sons, LLC creditor Phillips and Jordan, Inc.'s motion for reconsideration of an order approving $3.5 million in debtor-in-possession financing for some of Levitt's subsidiaries was denied Monday by the U.S. Bankruptcy Court for the Southern District of Florida.

As previously reported, Phillips and Jordan said the DIP loan approval "constitutes clear and manifest injustice" because the court should not have entered the order without determining whether sale proceeds covered in the DIP agreement would exceed the value of Levitt's properties and all liens on the property, including Phillips and Jordan's and other secured liens.

According to the motion, improper evidence was presented to the court on the value of the property in question, and Phillips and Jordan and other lienholders were not given proper notice of the related valuation hearing.

As a result, Phillips and Jordan said the DIP loan approval strips its liens without evidence or sufficient notice.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.