Caruso Homes' Reorganization Plan Gets OK

Law360, New York (September 3, 2009, 7:28 PM EDT) -- Homebuilder Caruso Homes Inc. has taken a major step out of bankruptcy with the approval of its reorganization plan, which calls for the company to share future profits with creditors.

Judge F. Schneider of the U.S. Bankruptcy Court for the District of Maryland confirmed Caruso Homes' Chapter 11 reorganization plan Sept. 1. The Washington-area homebuilder had filed for bankruptcy in June 2008, a victim of the flagging house prices and bad mortgages of the subprime credit crisis.

Under its reorganization plan, the company will share some...
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