Engle Homes, Las Vegas home builder, files for Chapter 11 Bankruptcy protection. The Florida based new home builder, under the name Tousa Inc., asked this week for debtor in possession financing.
Because of the housing downturn in Las Vegas and many other areas of the country, some local home builders will be closing their doors.
Day to day operations of the home building company are expected to continue without interruption.
Last year, Engle Homes of Las Vegas, NV, closed 224 new homes for sale.
What are some of the factors that caused this bankruptcy? Several major factors including increased foreclosures and home inventories, lowered consumer confidence, and challenges in mortgage and credit industry are all a result of the worsening U.S. housing market.
Engle has found $150 million in debtor in possession financing from Citigroup Global Markets. The loan financing requires bankruptcy court approval and will be senior to existing debt.
Even in their current situation, Tousa, which operates in Texas, the West, the Mid Atlantic and Florida, expects to deliver the 2,500 homes that have been sold. Construction of new Las Vegas homes and new orders will continue as expected from Engle Homes. Source: Review Journal
Engle Homes Las Vegas builder filed for Chapter 11 bankruptcy protection.