Levitt and Sons lienholders denied motion to dismiss or convert Chapter 11 case

By Jennifer Lanning Drey

Portland, Ore., Feb. 26 - A motion filed by a group of Levitt and Sons LLC lienholders asking the U.S. Bankruptcy Court for the Southern District of Florida to dismiss or convert the company's Chapter 11 bankruptcy case was denied at a Tuesday hearing, according to a source familiar with the case.

During the hearing, judge Raymond B. Ray commented that the company's $3.5 million debtor-in-possession financing is resulting in homes being completed, demonstrating that the DIP financing had, and would continue to, benefit Levitt and Sons' estate, the source said.

The lienholders had asserted in a Jan. 29 motion that continuing the bankruptcy case only served to benefit the lender in liquidating its collateral.

The creditors hold junior liens, generally in the nature of mechanic's liens against one or more of Levitt and Sons' affiliates. They include Ferguson Enterprises Inc., Phillips and Jordan Inc., American Woodmark Corp., C&C Ripoll Masonry Bemci Electric Services Inc., Construction Management Plus Inc., Foglemen Builders Supply, JP Stevens Construction Co., Southern Curb Inc. and Millennium Electrical Services Inc.

Levitt and Sons, a Fort Lauderdale, Fla.-based homebuilding subsidiary of Levitt Corp., filed for bankruptcy on Nov. 9. Its Chapter 11 case number is 07-19845.

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