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Live Oak Developer Files For Chapter 11

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By LAURA KINSLER | The Tampa Tribune

Published: January 30, 2008

TAMPA - Live Oak Preserve developer TOUSA on Tuesday joined a growing list of South Florida homebuilders to file for Chapter 11 restructuring.

The company, which operates in 10 states, lost $818 million in the first three quarters of 2007. End-of-year statements have not been released, but the company's chief financial officer resigned Friday.

"This action is necessary to reflect the realities of today's homebuilding market," Antonio Mon, TOUSA's chief executive officer, said during a conference call.

TOUSA's failed merger with Transeastern Homes factored prominently in the company's losses. The 2005 joint venture came at the height of Florida's real estate boom. The parent company was forced into a costly buyout and rolled Transeastern's assets into its subsidiary, Engle Homes.

Spokesman Tom Becker said Engle Homes plans to continue building and selling homes and pledges to honor new home warranties for 10 years, but those decisions are up to a bankruptcy court judge. TOUSA's legal team makes its first court appearance today.

"We will follow through on all our commitments to complete all homes in backlog with no interruptions in service or amenities," Becker said. "As far as the residents are concerned, it should be business as usual."

Live Oak homeowner Sheldon Cohen said residents are unsure of how to take the news.

"I see a lot of positives," he said. "I'm satisfied with what we're getting. There's active construction; they're selling houses. Are we going to get stuck paying the bills? I don't know."

Construction on the pool and cabana in The Hammocks, a 500-unit town house complex on County Line Road, will continue, said Rick Feather, Engle's vice president of operations.

"If the weather doesn't get nasty, we should be completed in late February," he added.

Engle Homes also operates in Pasco County's Tampa Bay Golf & Country Club.

Reporter Laura Kinsler can be reached at (813) 865-4844 or lkinsler@tampatrib.com.

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