Homebuilder Plummets Into Bankruptcy Court

Law360, New York (August 4, 2008, 12:00 AM EDT) -- Floundering homebuilder WCI Communities Inc. and 130 of its subsidiaries filed for bankruptcy protection Monday, citing the “recognition that the company’s entire $1.8 billion of debt may soon be in default.”

The Florida-based company filed for Chapter 11 Monday in the U.S. Bankruptcy Court for the District of Delaware, declaring $2.18 billion in assets and $1.915 billion in debts as of the quarter ending June 30. WCI also said that Jerry L. Starkey, WCI’s chief executive officer since 2005, had left the company.

WCI's board is...
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