Hollywood, Fla.-based home builder Technical Olympic USA (TOUSA) announced this week it has filed for bankruptcy protection.
TOUSA, which reported a more than $10 million loss in November, said it received support from more than 50 percent of its senior noteholders on a proposed plan for restructuring its equity and all its unsecured debt to include the bankruptcy filing.
The filing includes TOUSA Homes, Newmark Homes and entities that represent all their brands -- Engle Homes, Newmark Homes, Fedrick, Harris Estate Homes and Trophy Homes.
"This action is necessary to reflect the realities of today's home-building market,” said Antonio Mon, president and CEO of TOUSA. “Our core operations are solid, and our market position suggests a strong future for our company. We are focused on restructuring our balance sheet and we expect business to continue as usual.”
Citigroup Global Markets has agreed to provide the company with up to $150 million in debtor-in-possession financing.
The filing is just one part of the company’s restructuring agreement with its senior noteholders, who will receive substantially all of the common stock of the reorganized company.
At the date of the filing, TOUSA had approximately 2,500 homes in backlog. The company said it plans to continue home building uninterrupted during this process.