Hedge Fund Investor is Leading Bidder on TOUSA's Western Assets

Noted hedge fund manager John Paulson’s company is the leading bidder for bankrupt TOUSA Homes’ Western region assets, offering $42.4 million for 8,277 un-started lots and 22 model homes in Arizona, Colorado, and Nevada. Paulson’s interest in the land has been a poorly kept secret. The company offered to buy all the Western assets in November 2009. Prior to that, TOUSA had been negotiating to sell off the assets in pieces. After Paulson’s November offer, TOUSA reached out to others who might be interested in purchasing those holdings, according to bankruptcy court filings. “While the debtors engaged in follow-on conversations with certain potential purchasers, Paulson’s offer remained the highest and best available,” the documents said. On March 4, TOUSA and Paulson inked a deal that gave it 21 days for due diligence. That deadline was extended 11 times while Paulson worked through settling claims and amending developer agreements on the land.

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