It’s been a rough summer for Carl Icahn. He struck out with Yahoo (for the most part), Blockbuster dropped his much-beloved plan to merge with Circuit City, and today the home builder he took control of last fall filed for bankruptcy. We’ve speculated that the legendary corporate raider has lost it, and the evidence increasingly supports this:
AP via LA Times: Carl Icahn’s WCI Communities became the latest casualty of the housing market crisis Monday, filing for Chapter 11 bankruptcy protection after the home builder failed to get additional financing in the face of massive losses.
Icahn, chairman of WCI’s board, said the filing was necessary because the Bonita Springs, Fla.-based developer’s entire $1.8 billion debt may soon be in default. Icahn said this was confirmed when some holders of $125 million convertible notes insisted on being paid in cash in full on Tuesday…
WCI Communities builds tower residences and traditional homes in upscale communities in the mid-Atlantic and Northeast, but most of its business is in Florida, where the housing market has struggled mightily. The developer had been trying to stay afloat in the face of weak demand, flagging prices, canceled orders and growing inventory…
Icahn was named chairman last September after he attempted to take over the board and force the sale of the company. He said at the time that he viewed WCI as “a unique vehicle to take advantage of the current market disarray.”
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