In its voluntary petition, filed in US Bankruptcy Court in Newark, Tarragon listed assets of $840 million and debts totaling $1 billion. According to a Q3 financial statement issued in November, the company had a net loss from continuing operations of $111.5 million on consolidated revenues of $275.8 million for the first nine months of 2008.

The bankruptcy filing follows a period of financial losses brought about by falling prices and slower sales in Tarragon's homebuilding division, restrictions on the availability of financing and declining real estate values, according to a release. Tarragon's goal is to implement a comprehensive reorganization, and the company will seek "additional outside financing and participation of a new investor or investor group," the release states.

The company says it has a commitment for debtor-in-possession financing from an affiliate of Israel-based ARKO Holdings, Inc., and says the Chapter 11 filing is expected to have no impact on the day-to-day operations of Tarragon Management, Inc. or on the operation of the rental apartment properties in Tarragon's investment division.