Judge gives Beazer OK to buy bankrupt developer's Phoenix lots

Dow Jones Bankruptcy Review is reporting that a bankruptcy judge gave homebuilder Beazer Homes USA Inc. (BZH) permission to buy more than 200 undeveloped lots near Phoenix from DBSI Inc. for $6.4 million. Judge Peter J. Walsh of the U.S. Bankruptcy Court in Wilmington, Del., signed an order June 28, 2010, authorizing a Beazer Homes subsidiary - Beazer Homes Holdings Corp. - to purchase 232 lots for $27,800 each. The lots, which make up a property known as Surprise Farms, are located in the Phoenix suburbs about 25 miles northwest of downtown Phoenix. Walsh said proceeds from the sale can be used to pay the commission for Westland Properties Group, which helped market the property. He also said the net proceeds from the sale can be used to pay what DBSI owes DBSI 2006 Notes Corp. The trustee overseeing DBSI during its bankruptcy case said in court papers that the company borrowed money from DBSI 2006 Notes to acquire and develop Surprise Farms and purportedly owes $10.5 million.

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