Insolvency and Restructuring Update - October 15, 2009
On October 13, in the chapter 11 cases of homebuilder TOUSA, Inc. and its subsidiaries, Judge John K. Olson of the United States Bankruptcy Court of the Southern District of Florida avoided as fraudulent transfers the liens and underlying debt obligations incurred by certain of TOUSA’s subsidiaries in connection with $500 million of secured loans made six months prior to the bankruptcy filing. The proceeds of the loan facilities were used to fund a litigation settlement of TOUSA and another subsidiary (that was not an obligor on the loans).
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