Homebuilder-Bankruptcy.com

Two days after Mercedes Homes filed for bankruptcy, the home builder obtained interim court authorization to use lenders’ cash collateral. Like almost all cash collateral orders, this authorization was supposed to end on March 2, 2009. With March 2 behind us, Mercedes Homes had requested an extension of the use of cash collateral through April [...]

The court has authorized Mercedes Homes to continue to honor obligations related to Customer Programs, including warranty claims. Two limitations:
First, it is not obligated to do so.
Second, Mercedes Homes cannot spend more than 1% of a home’s final sale price on warranty claims.
Take a look at our earlier post on the topic of [...]