Tousa Creditors Say Directors Wrongly Piled On Debt

Law360, New York (June 10, 2009, 12:00 AM EDT) -- The creditors committee of bankrupt homebuilder Tousa Inc. have taken aim at the company's former directors, alleging that they did not take creditors into account when they took on $500 million in debt while the company teetered on the verge of bankruptcy.

In an adversary complaint filed Tuesday in the U.S. Bankruptcy Court for the Southern District of Florida, the creditors committee said Technical Olympics SA, Tousa's majority shareholder prior to the bankruptcy filing, only took into account the interests of shareholders and Tousa when it...
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