Levitt and Sons – Frequently Asked Questions GENERAL Why did Levitt and Sons file bankruptcy? Go to www.levittandsons.com for information on the bankruptcy filings. Why aren’t all the Levitt communities being managed by the Chief Administrator? The Claims Administrator’s role is defined in the Asset Management Agreement between specific Levitt entities [Levitt and Sons of Cherokee County, LLC, Levitt and Sons of Hall County, LLC, Levitt and Sons of Paulding County, LLC, Levitt and Sons of Horry County, LLC, Levitt and Sons of Manatee County, LLC and Levitt and Sons at World Golf Village, LLC (collectively, the “Owners”) and Soneet R. Kapila (“Chief Administrator”) effective January 11, 2008. The Chief Administrator acts as an agent of the Owners to manage and supervise all administrative functions related to the Wachovia projects. Since the Owners filed bankruptcy under Chapter 11, the Owners continued in possession of their assets and in the operation and management of their businesses. The Owners negotiated an agreement with Wachovia Bank to provide a revolving line of credit to, among other things, facilitate the completion and sale of homes in the Wachovia projects (listed below.) Homes in other projects, excluding Wachovia projects, are not included in the Asset Management Agreement. For information relating to any other projects, visit www.levittandsons.com
ROLE/DUTIES OF THE CHIEF ADMINISTRATOR Why was a Chief Administrator appointed? Levitt and Sons obtained Court approval of a financing agreement with Wachovia Bank that permits certain of the Levitt companies to re-start construction and sale efforts at some of their developments. Wachovia and Levitt, along with their legal counsel and financial advisors requested the Bankruptcy Court to appoint a Chief Administrator to supervise and manage the construction at all of the Wachovia projects. Soneet Kapila was approved by the Court to fill this role. Which projects is the Chief Administrator managing? The Chief Administrator will supervise and manage seven Wachovia projects located in Florida, Georgia and South Carolina: The Cascades at Sarasota (Florida) What Levitt entities were developing the Wachovia projects? Levitt and Sons of Cherokee County, LLC Do I have to file a claim with the Chief Administrator? The Chief Administrator’s role is separate and apart from Chapter 11 filings of the Levitt entities. Go to the Levitt and Sons website at www.levittandsons.com for information relating to the bankruptcy cases. You do not file a claim with the Chief Administrator. The Chief Administrator’s function is to manage and supervise the on-going construction of the Wachovia projects and administer the remaining assets. CASE STATUS Levitt and Sons Bankruptcy On November 9, 2007 Levitt and Sons®, LLC and 37of its subsidiaries, including the above six developers of the “Wachovia project” developers filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The Chapter 11 filings were made in the U. S. Bankruptcy Court for the Southern District of Florida in Fort Lauderdale. Levitt and Sons is the homebuilding subsidiary of Levitt Corporation. Go to www.levittandsonc.com for further information on filing claims, etc. DEPOSITORS I deposited a down-payment on a house in one of the Wachovia Communities. The home hasn’t been started. Can I get my deposit money back if I don’t want to buy the house? The Chief Administrator’s legal team and financial advisors are currently reviewing all existing purchase and sale contracts and financial data relating to deposits on homes in the Wachovia projects which were made previous to the bankruptcy filings. The CA will deal with each contract on a case by case basis. It is not known at this time if contracts will be voided and deposits returned. I want to go forward with the purchase. When can I expect my home to be completed? The Chief Administrator is diligently working towards re-starting the construction on the Wachovia projects. He is in the process of hiring construction consultants, contractors, obtaining insurance, bonding, etc. necessary to resume construction. Will the promises and warranties made by Levitt when I signed my contract before the bankruptcy still be honored? The Chief Administrator’s legal team and financial advisors are presently reviewing all existing purchase and sale contracts. How can I find out what is going to happen with the home and my deposit? You can send an inquiry to the Chief Administrator CONTACT US with your questions or concerns. I put a deposit down on a house. It hasn’t been started yet (is still under construction). I need to move soon. Is there any way I can trade for another house or lot? The Chief Administrator will be happy to discuss your situation with you. Please contact him by clicking CONTACT US or call him directly. HOMEOWNERS I live in a Wachovia project community. Someone put a lien on my home. Is Levitt and Sons going to satisfy that lien? That is a matter that will be decided in the Bankruptcy Court. You should consult an attorney and notify your title insurance carrier. We live in a Wachovia project community. What is going to happen to the community’s unfinished clubhouse (or golf course or pool, etc). The Chief Administrator and his advisors have visited all the Wachovia communities, have met with representatives of the Homeowners Associations and will are addressing all of these concerns. It will take time to sort out the logistics of going forward with the completion of each community’s amenities and develop an action plan. Will the filing of Chapter 11 affect my Homeowners Association (HOA)? If control of the Homeowners Association was previously turned over to the HOA, Chapter 11 filings should not affect the HOA and it should continue to operate according to its rules and regulations. For those HOA’s still under the control of the Levitt entities, it is status quo. What is going to happen to the lots that aren’t under contract? The Chief Administrator will decide on the disposition of any unsold lots. His initial focus will be to complete existing homes under contract, market and sell any spec homes and develop a global business plan. CONTRACTORS I was previously working for Levitt and Sons as a sub-contractor on one of the Wachovia projects. I would like to continue working on the project. Who do I contact? Send your information to Karen Fugate kfugate@kapilaco.com, the Chief Administrator’s construction consultant.
I am owed money for services performed for Levitt and Sons on one of the Wachovia projects. How can I get paid? For any services performed pre-bankruptcy, you need to go through the Bankruptcy Court to file a claim. INTERESTED BUYERS I would like to purchase a home in one of the Wachovia projects. How can I find out about what models are available? Go to the COMMUNITIES page and click on the link that will lead you to Levitt’s original pre-bankruptcy websites. This will lead you to Levitt’s original “pre-bankruptcy” websites where the model homes of each community are displayed. The prices and models are subject to change without notice.
I am interested in buying assets in the Wachovia projects, how can I find out which are for sale?
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Kapila & Company 2008
