NVR Sues Orleans Homebuilders Over Jilted $170M Sale

Law360, New York (June 1, 2010, 2:36 PM EDT) -- Spurned suitor NVR Inc. has sued Orleans Homebuilders Inc. to obtain as much as $4.4 million in termination fees, saying the bankrupt construction company reneged on a $170 million sale in favor of pursuing a Chapter 11 reorganization with senior lenders.

The adversary complaint, filed Friday in the U.S. Bankruptcy Court for the District of Delaware, claims Orleans has not effectively terminated the $170 million stalking horse agreement and has caused NVR substantial damages by abruptly abandoning the deal and embracing a stand-alone reorganization.

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