Tousa DIP facility terminated; company granted six-month access to cash collateral

By Caroline Salls

Pittsburgh, June 24 - Tousa, Inc.'s debtor-in-possession facility was terminated on June 20, but the company received court approval to use the $358 million in cash collateral of its first-lien and second-lien secured lenders for six months, according to an 8-K filed with the Securities and Exchange Commission.

In addition, the cash collateral order allows the company to pay down $175 million to its first-lien secured lenders if specified lender claims are allowed and repayment is required.

Tousa also secured the right to pay down an additional $15 million to the first-lien lenders and to incur liens and enter into sale/leaseback transactions for model homes.

Tousa, a Hollywood, Fla.-based homebuilder, filed for bankruptcy on Jan. 29 in the U.S. Bankruptcy Court for the Southern District of Florida. Its Chapter 11 case number is 08-10928.

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