Tough Market Pushes Caruso Homes Into Ch. 11

Law360, New York (June 24, 2008, 12:00 AM EDT) -- Homebuilder Caruso Homes Inc. filed for Chapter 11 bankruptcy on Monday, blaming the nation's ailing housing market and defaulting mortgages for its mounting debt and vowing to stay in business.

“Our choice to seek reorganization arises directly out of the decline in the nation’s residential real estate market,” said Chris Block, Caruso's vice president of operations. “We intend to deliver homes under construction or contract, and will make all possible efforts to ensure that our customers remain unaffected by the reorganization.”

In its Chapter 11 petition,...
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