Tousa looks to repay $194.39 million of revolver principal, interest

By Caroline Salls

Pittsburgh, Nov. 1 - Tousa, Inc. and its official committee of unsecured creditors requested court approval to repay some secured revolving credit facility claims, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

Specifically, the company is looking to repay the $193.16 million principal amount outstanding under its pre-bankruptcy secured revolving credit facility as of Oct. 31, as well as $1.23 million of non-default contract-rate interest outstanding on the revolver and revolver agent fees.

Tousa said that the outcome of litigation against its pre-bankruptcy term loan lenders and senior Transeastern lenders is the "gating item" in its case and will dictate the terms of a liquidation plan.

However, the company said the allowance of the oversecured revolver claims is no longer disputed.

Tousa said the revolver claims are accruing interest at a rate of $1.2 million per month and are reducing the pool of assets that will ultimately be available for distribution to other creditors.

While complete consensus among the revolver lenders and agent has not yet been achieved to date, the company said discussions have resulted in support from Monarch Alternative Capital, the single largest holder of claims under the revolver facility and other facilities.

As a result, Tousa said it is looking to repay the revolver amounts, subject to a reservation of rights for the agent, the revolver lenders and the term loan lenders related to the revolver lenders' entitlement to default interest, the agent and revolver lenders' right to assert entitlement to professional fees in connection with future lawsuits and the allocation of the payoff amount among the debtors' estates.

Tousa, is a Hollywood, Fla.-based homebuilder. The company filed for bankruptcy on Jan. 29, 2008. Its Chapter 11 case number is 08-10928.

© 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.