In a Securities and Exchange Commission (SEC) filing, the Levitt Corp. says its subsidiary, Levitt and Sons, has received a number of default notices from Wachovia Bank and KeyBank. The company also reiterated that while the builder is pursuing negotiations with its lenders to restructure outstanding debts, the Levitt Corp. would not make any additional advances to Levitt and Sons unless acceptable concessions are made with its principal lenders.
The Levitt Corp. adds that the builder "is not currently in a position to cure any defaults that may arise."
The first notice of default from Wachovia relates to a $125,000,000 land acquisition, development, and construction loan; the second Wachovia notice of default relates to a $30,000,000 construction loan; the third Wachovia notice of default relates to a $26,500,000 land acquisition, development, and construction loan; and the notice of default from KeyBank relates to a $125,000,000 revolving land acquisition loan. According to the filing, if the defaults are not addressed, commencement of foreclosure proceedings against the assets securing the respective loans may soon follow.
Last week, the Florida-based home builder suspended operations on all projects until further notice.
Levitt and Sons is best known for Levittown, a community developed for returning World War II soldiers and their families and has built over 200,000 homes throughout the U.S., Canada, Puerto Rico, and Europe. The company currently builds in Florida, Georgia, South Carolina, and Tennessee.
Learn more about markets featured in this article: Memphis, TN.