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Levitt and Sons disclosure statement OK'd pending filing of new agreement with creditors
By Jennifer Lanning Drey
Portland, Ore., Dec. 11 - Levitt and Sons LLC obtained preliminary court approval for its second-amended disclosure statement, subject to the filing of additional amendments by Dec. 18, according to a source familiar with the case.
The additional amendments reflect an agreement reached during a Wednesday hearing at the U.S. Bankruptcy Court for the Southern District of Florida between the company, its official committee of unsecured creditors and creditor Wachovia Bank, the source said.
A final hearing on the disclosure statement is scheduled for Dec. 23.
If the disclosure statement is approved at that hearing, the confirmation hearing will be held on Feb. 19 and Feb. 20.
Creditor treatment
As previously reported, creditor treatment under Levitt and Sons' most recently filed plan of liquidation includes:
• Holders of administrative expense claims, priority tax claims and priority claims will be paid in full in cash;
• Holders of Bank of America NA and KeyBank secured claims will receive either the proceeds of the sale of the collateral securing their claims or the return of the collateral;
• Holders of AmTrust Bank (Hartwood Reserve) secured claims will be paid in full from the proceeds of collateral sales, paid in full in exchange for a discharge of the collateral securing the claims, or satisfied through the return of the collateral;
• Holders of Wachovia Bank NA secured claims and Wachovia post-bankruptcy debtor-in-possession financing secured claims will be paid in accordance with the DIP agreement;
• Holders of other secured claims will receive the proceeds of the sale of the collateral securing the claims or return of the collateral, to the extent that the collateral has not been previously sold or abandoned;
• Holders of general unsecured claims will receive a share of cash remaining after payment of administrative, priority and secured claims;
• Holders of subordinated claims will receive a share of any available cash after all other claims have been paid in full and resolved; and
• Holders of equity interests will receive no distribution under the plan.
Levitt and Sons, a Fort Lauderdale, Fla.-based homebuilding subsidiary of Levitt Corp., filed for bankruptcy on Nov. 9, 2007. Its Chapter 11 case number is 07-19845.
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