Tousa Creditors Lose $316M Loan Appeal

Law360, New York (March 7, 2011, 6:43 PM EST) -- A federal judge in Florida on Friday upheld a bankruptcy court’s order blocking creditors of Tousa Inc. from attempting to claim $316 million in loans made to the homebuilder.

Judge Adalberto Jordan of the U.S. District Court for the Southern District of Florida agreed that a group of lenders led by agent Citicorp North America Inc. did not benefit from fraudulent transfers under a revolving credit line offered to Tousa six months before its January 2008 bankruptcy.

The credit line did not force Tousa to incur...
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