Kramer Levin Wins Eleventh Circuit Appeal in TOUSA Bankruptcy

Kramer Levin represented certain holders of claims arising from the rejection of so-called “lot option agreements” in the bankruptcy of home builder TOUSA, Inc. The claimants asserted that their claims were entitled to be treated as senior debt under certain subordinated notes indentures, while the Debtors, the Creditors’ Committee and the senior noteholders opposed such treatment. After Kramer Levin’s clients prevailed before both the Bankruptcy Court and the District Court, the senior noteholders appealed to the Eleventh Circuit Court of Appeals. On March 26, 2015, the Eleventh Circuit issued an opinion affirming the lower courts' holdings and determining that all of the lot option agreement claims were entitled to senior debt treatment. The Kramer Levin team that worked on the matter was led by Corporate Restructuring and Bankruptcy partner Josh Brody, special counsel David E. Blabey, Jr. and associates Rachael Ringer and David Mayo.