Tarragon Files Chapter 11 Bankruptcy

NEW YORK -- Residential real estate developer Tarragon (TARR Quote) said Monday that it and some of its subsidiaries have filed for Chapter 11 bankruptcy protection because of financial losses caused by falling prices and slower sales in its home building division.

Tarragon said its goal was a comprehensive reorganization of the company. Tarragon will seek additional outside financing and participation of a new investor or investor group, the company said in a news release.

Tarragon said it has received a commitment for debtor-in-possession financing from an affiliate of ARKO Holdings Inc., an Israeli company. The bankruptcy cases were not expected to result in any distribution to Tarragon's equity holders, the company said.

The company said it has "adequate current liquidity" and the filing is not expected to impact the daily operations of the management subsidiary, Tarragon Management Inc., or the operation of the rental apartment properties in Tarragon's Investment Division. ...