Engle Homes builder Tousa Inc. files for Chapter 11 bankruptcy protection

Florida-based Tousa Inc., which builds homes in Las Vegas under the Engle Homes brand, filed for Chapter 11 bankruptcy protection Tuesday while the company seeks debtor-in-possession financing.

Homebuilding operations are expected to continue uninterrupted, the company said in a statement.

Dennis Smith of Home Builders Research reported 224 escrow closings for Engle Homes in Las Vegas last year.

Smith said he wasn't surprised by the news, having predicted for some time that at least one or two local home builders would go under as a result of the housing downturn.

"People in the industry have been talking and waiting for this to happen," Smith said.

Citigroup Global Markets has agreed to provide up to $150 million in debtor-in-possession financing. The financing will be senior to existing debt and requires bankruptcy court approval.

The proposed restructuring is the result of the downturn in the U.S. housing market, which accelerated over the last several months, the company said. A number of factors such as challenges in credit and mortgage markets, diminished consumer confidence and increased home inventories and foreclosures have contributed to lower gross sales and higher cancellation rates.

Operating in Florida, the Mid-Atlantic, Texas and the West, Tousa had about 2,500 homes in backlog. The builder expects to deliver all of those homes and will continue to take new orders, construct new homes and provide financial services to customers.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or (702) 383-0491.