Citicorp, Other Lenders Must Disgorge $403M To Tousa

Law360, New York (October 14, 2009, 5:44 PM EDT) -- Lenders to bankrupt builder Tousa Inc., including Citicorp North America NA and Wells Fargo Bank NA, have been ordered to disgorge $403 million plus interest in a suit brought by Tousa's unsecured creditors committee over secured loans the lenders issued to the builder months before its Chapter 11 filing.

Judge John K. Olson of the U.S. Bankruptcy Court for the Southern District of Florida on Tuesday also ordered Citibank and Wells Fargo to disgorge to Tousa subsidiaries' estates all principal, interests, costs and expenses paid to...
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