Levitt and Sons plan of liquidation gets court approval

By Jennifer Lanning Drey

Portland, Ore., Feb. 20 - Levitt and Sons LLC obtained court approval for its plan of liquidation Friday from the U.S. Bankruptcy Court for the Southern District of Florida, according to a source familiar with the case.

The court scheduled a post-confirmation status confirmation on April 1 to ensure the company and the plan administrator comply with the provisions of the plan confirmation order.

Creditor treatment under the plan 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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