Tousa Creditors Object To Execs' Legal Fees

Law360, New York (January 5, 2009, 12:00 AM EST) -- Creditors of bankrupt homebuilder Tousa Inc. have asked a court to stop the company from paying $155,000 in legal fees to two executives under investigation by the U.S. Securities and Exchange Commission.

In a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Florida, the official committee of unsecured creditors said that Tousa's obligation to pay the legal fees comes from prepetition indemnification agreements and that the claims should therefore not be paid outside of a reorganization plan.

The creditors further pointed...
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