Tousa granted court approval of procedures for $42.43 million sale

By Caroline Salls

Pittsburgh, July 15 - Tousa Inc. obtained court approval of the bidding procedures related to the proposed $42.43 million sale of substantially all of the company's Western Region assets, according to a Wednesday 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. 12. They must be for at least $500,000 more than Paulson's bid and cover a 3% break-up fee that would be paid if Paulson is not the high bidder.

If more than one qualified bid is received, an auction will be held on Aug. 20. Bids at auction must be made in minimum increments of $500,000.

A sale hearing is scheduled for Aug. 25.

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. Its Chapter 11 case number is 08-10928.

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