Another Homebuilder Files For Ch. 11

Law360, New York (January 29, 2008, 12:00 AM EST) -- Homebuilder Tousa Inc. will file for Chapter 11 protection as part of a restructuring agreement it has already reached with more than half of its senior noteholders.

Announcing the bankruptcy filing Tuesday, Tousa cited the “dramatic” downturn of the American housing market in recent months. Like many observers, Tousa blamed the housing market's deflation on “severe liquidity challenges in the credit and mortgage markets, diminished consumer confidence, increased home inventories and foreclosures, and downward pressure on home prices.

"This action is necessary to reflect the realities...
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