Tousa seeks court OK to sell Western Region assets for $42.4 million

By Lisa Kerner

Charlotte, N.C., June 29 - Tousa Inc. requested court approval of the bidding procedures related to the proposed sale of substantially all of the company's Western Region assets for $42.43 million, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

The stalking horse bidder is Paulson RERF Acquisition Corp.

The Western Region is comprised of five metropolitan markets where Tousa markets homes under the Eagle Homes brand name. The markets include Denver, Colorado Springs, Boulder, Colo., Phoenix and Las Vegas.

Competing bids are due by 5 p.m. ET on Aug. 15. They must be for at least $1 million more than Paulson's bid plus cover the break-up fee plus $500,000.

If more than one qualified bid is received, an auction will be held on Aug. 23.

A sale hearing would be held on Aug. 25.

Tousa will pay Paulson a 3% break-up fee and reimburse up to $250,000 of its related expenses if it accepts another bid for the assets.

The company said it ceased taking sale orders for new homes on undeveloped lots throughout the states of Arizona, Colorado and Nevada and began the process of selling all in-progress construction.

Tousa, a Hollywood, Fla.-based homebuilder, filed for bankruptcy on Jan. 29, 2008 in the U.S. Bankruptcy Court for the Southern District of Florida. Its Chapter 11 case number is 08-10928.

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