Levitt and Sons, LLC, the successor to the founding firm of the production home building industry, on Nov. 9 filed for bankruptcy protection from creditors for itself and 37 subsidiaries under Chapter 11 of the U.S. Bankruptcy Code in federal court for the Southern District of Florida.
The filing, which was expected, includes only Levitt and Sons, a subsidiary of Levitt Corp, which the company said remains "financially strong and conducting normal business operations" along with its other principal subsidiary, Core Communities.
The filing is likely lead to the end of Levitt and Sons as a business enterprise.
In announcing the action, Levitt and Sons cited "unprecedented conditions in the homebuilding industry, which have severely impacted the company." In a statement, the company said it has been negotiating with its bank lenders in an effort to "restructure its debt and obtain appropriate funding to complete unfinished homes and other projects that were suspended due to the company's financial condition. These negotiations have not been successful to date but remain ongoing."
Lawrence E. Young of AP Services, LLC and a Managing Director at AlixPartners LLP, the Southfield, Mich. based restructuring firm, was named chief restructuring officer, a new position, effective October 22.
Young was quoted in the statement as saying, "Through the Chapter 11 process, we seek a mechanism that will facilitate the completion of some unfinished homes. Likewise, we seek a resolution that will allow closings to take place promptly for previously completed homes...Our principal objective during the Chapter 11 process will be to identify the best means of maximizing recoveries for all creditor constituencies including our customers and employees. As part of this process, we will explore the potential sale of all or some of Levitt and Sons' assets."
The company says it has set up a web site at www.LevittandSons.com and telephone lines at 888-538-4893 for vendors and 877-538-4889 for customers who seek additional information of the filing.