Interest Rate Roundup

Monday, August 04, 2008

WCI files for Chapter 11

WCI Communities, the builder best known for its large exposure to the Florida high-rise condominium market (though it also builds single-family homes), has filed for Chapter 11 bankruptcy protection. Some 130 of its subsidiaries and the company as a whole will look to restructure, though the company's real estate brokerage and WCI Mortgage business are not included in the filing.

WCI will continue to operate, with access to $50 million in cash and potentially $100 million in debtor in possession financing. WCI closed on 1,657 traditional and tower homes in calendar 2007 and 2,215 in 2006. That compares to about 7,800 homes in full-year 2006 at TOUSA, which filed for bankruptcy in January, and 1,700 at Levitt, which filed in November. WCI had $2.18 billion in assets as of June 30 vs. $2.3 billion at TOUSA at the time of its filing.


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