NEW YORK CITY-A federal bankruptcy judge has approved the amended reorganization plan filed by Tarragon Corp., court documents show. The locally based residential developer and multifamily investor and several subsidiaries had filed for Chapter 11 protection in January 2009, citing $1 billion in debt on assets of $840 million.

In the reorganization plan approved late last week by Judge Donald Steckroth of US Bankruptcy Court for the District of New Jersey, Tarragon will liquidate some assets but maintain control over others through an entity to be called New Ansonia that will be jointly owned by creditors and key company executives. Additionally, Tarragon’s unsecured creditors will contribute claims to a creditor entry in return for 100% of the equity in that entity.

The creditors will own 50% of New Ansonia’s equity, while Tarragon president Robert Rothenberg and Beachwold Partners LLP, of which Tarragon CEO William Friedman is general partner, will own the other half.

Tarragon is being represented by attorneys Michael Sirota and Warren Usatine of Haceknsack, NJ-based Cole, Schotz, Meisel, Forman & Leonard, while Dan Lowenthal, a partner at Patterson Belknap Webb & Tyler LLP in New York, is representing the creditors. A spokeswoman for Lowenthal says Steckroth complimented attorneys on both sides for achieving a successful restructuring amid a challenging economic environment.

Headquartered in Manhattan, Tarragon’s operations are concentrated in the Northeast and Southeast as well as Texas, and include both for-sale and rental apartments. Locally, it operates three condominium developments in New Jersey and one in Warwick, NY.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

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