Tousa requests court approval to use cash collateral beyond April 30

By Caroline Salls

Pittsburgh, March 19 - Tousa, Inc. requested court approval to continue to use cash collateral on and after May 1, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Florida.

Tousa said it has reached an agreement in principle on a mediation settlement proposal and related Chapter 11 plan term sheet with its official committee of unsecured creditors, MatlinPatterson Global Advisers and Monarch Alternative Capital LP, as investment adviser to Monarch Master Funding Ltd.

The company said an extension of its cash collateral use is necessary as the parties continue to work to build consensus and document the settlement.

In addition, with cash collateral use set to expire on April 30, Tousa said "all parties believe an extension is appropriate to facilitate the filing and confirmation of a Chapter 11 plan."

This is the company's 13th cash collateral use motion.

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