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

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

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

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and 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.