Tousa eyes OK to use lenders' cash collateral on and after May 1

By Caroline Salls

Pittsburgh, April 4 - Tousa, Inc. requested court approval to use the cash collateral of its pre-bankruptcy lenders on and after May 1, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

The cash collateral use is scheduled to expire on April 30.

Because no decision has been made yet on a key lawsuit appeal, Tousa said it is in talks with the lenders and its official committee of unsecured creditors regarding the continued use of cash collateral.

The company said it expects to reach an agreement on the terms of the extended cash collateral use, but those terms have not yet been finalized.

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

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