NEW YORK CITY-A federal bankruptcy judge has approved theamended reorganization plan filed by Tarragon Corp., courtdocuments show. The locally based residential developer andmultifamily investor and several subsidiaries had filed forChapter11 protection in January 2009, citing $1 billion indebt on assets of $840 million.

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

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