IN RE TOUSA, INC.

Nos. 10-60017-CIV/GOLD, 10-61478, 10-62032, 10-62035, 10-62037.

444 B.R. 613 (2011)

In re TOUSA, INC., et al., Debtors. 3V Capital Master Fund Ltd., et al., Appellants, v. Official Committee of Unsecured Creditors of Tousa, Inc., et al., Appellees.

United States District Court, S.D. Florida.

February 11, 2011.


Attorney(s) appearing for the Case

Nancy A. Copperthwaite , Akerman Senterfitt , Miami, FL, Aaron D. Van Oort , Minneapolis, MN, Alan J. Stone , Milbank, Tweed, Hadley & McCloy, New York, NY, Andrew T. Beirne , Milbank, Tweed, Hadley & McCloy, New York, NY, pro hac, vice, Andrew M. Leblanc , Milbank Tweed Hadley & McCloy LLP, Washington, DC, Atara Miller , Milbank, Tweed, Hadley & McCloy, New York, NY, Melina K. Williams , Faegre & Benson, LLP, Minneapolis, MN, Michael Ira Goldberg , Akerman Senterfitt & Eidson, Fort Lauderdale, FL, Stephen M. Mertz , Faegre & Benson, LLP, Minneapolis, MN, for Senior Transeastern Lenders (Group 1).

Ceci Culpepper Berman , Fowler White Boggs P.A., Tampa, FL, for Centurion CDO 10, Ltd., Centurion CDO 8, Ltd., Centurion CDO 9, Ltd., Centurion CDO 11, Ltd., Centurion CDO VI, Ltd., Centurion CDO VII, Ltd., Centurion CDO XI, Ltd., Sequils-Centurion V, Ltd., Eaton Vance Credit Opportunities Fund, Eaton Vance Floating-Rate Income Trust, Eaton Vance Grayson & Co., Eaton Vance Limited Duration Income Fund, Eaton Vance Senior Debt Portfolio, Eaton Vance Senior Floating-Rate Trust, Eaton Vance Senior Income Trust, Eaton Vance Vt Floating-Rate Income Fund, Riversource Floating Rate Fund.

Nancy A. Copperthwaite , Akerman Senterfitt , Miami, FL, Gabrielle Ruha , Milbank Tweed Hadley & McCloy LLP, New York, NY, Michael Ira Goldberg , Akerman Senterfitt & Eidson, Fort Lauderdale, FL, Patrick Marecki , Milbank Tweed Hadley & McCloy LLP, New York, NY, for 3V Capital Master Fund Ltd., Atascosa Investments, LLC, Aurum CLO 2002-1 Ltd., Bank of America, N.A., Bear Stearns Investment Products Inc., Burnet Partners, LLC, Deutsche Bank Trust Company Americas, Flagship CLO III, Flagship CLO IV, Flagship CLO V, Gleneagles CLO Ltd., Goldman Sachs Credit Partners, L.P., Grand Central Asset Trust, SOH Series, Grand Central Asset Trust, CED Series, Grand Central Asset Trust, HLD Series, Hartford Mutual Funds, Inc. on Behalf of the Hartford Floating Rate Fund by Hartford Investments Management Company, Their Sub-Advisor, Highland CDO Opportunity Fund, Ltd., Highland Credit Opportunities CDO Ltd., Highland Floating Rate Advantage Fund, Highland Floating Rate LLC, Highland Legacy Limited, Highland Offshore Partners, L.P., JP Morgan Chase Bank, N.A., Jasper CLO, Ltd., LL Blue Marlin Funding LLC, Liberty CLO, Ltd., Merrill Lynch Credit Products LLC, Monarch Master Funding Ltd. formerly known as Quadrangle Master Funding Ltd., Ocean Bank, Rockwall CDO, Ltd., Silver Oak Capital LLC, Stedman CBNA Loan Funding LLC, Foothills Group, Inc., Van Kampen Dynamic Credit Opportunities Fund, Van Kampen Senior Income Trust, Van Kampen Senior Loan Fund, Wells Fargo Bank N.A.

Nancy A. Copperthwaite , Akerman Senterfitt , Miami, FL, Michael Ira Goldberg , Akerman Senterfitt & Eidson, Fort Lauderdale, FL, for Loan Funding VII, LLC.

Aaron D. Van Oort , Minneapolis, MN, Ceci Culpepper Berman , Fowler White Boggs P.A., Tampa, FL, Melina K. Williams , Faegre & Benson, LLP, Minneapolis, MN, Stephen M. Mertz , Faegre & Benson, LLP, Minneapolis, MN, for Senior Transeastern Lenders (Group 2) Appellants Represented by Ceci Culpepper Berman.

Donald J. Russell , Robbins, Russell, Englert, Orseck, Untereiner & Sauber, LLP, Washington, DC, Eric J. Feigin , Robbins Russell Englert Orseck & Untereiner, Washington, DC, Lawrence S. Robbins , Robbins Russell Englert Orseck & Untereiner, Washington, DC, Michael L. Waldman , Robbins Russell Englert Orseck & Untereiner, Washington, DC, Patricia Ann Redmond , Stearns Weaver Miller Weissler Alhadeff & Sitterson, Miami, FL, for Official Committee of Unsecured Creditors c/o Patricia Redmond.

Beth A. Williams , Kirkland & Ellis, Washington, DC, Daniel T. Donovan , Kirkland & Ellis, Washington, DC, Paul A. Avron , Berger Singerman , Miami, FL, for Tousa, Inc. et al., c/o Paul Avron.


OPINION AND ORDER ON APPEALS BY TRANSEASTERN LENDERS

ALAN S. GOLD, District Judge.

I. INTRODUCTION

The Appellants in this bankruptcy appeal are a collection of financial entities (the "Transeastern Lenders")1 that loaned appropriately $450 million in 2005 to a homebuilding joint venture involving TOUSA, Inc. ("TOUSA").2 The Bankruptcy Court below ordered the Transeastern Lenders to...

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