MANATEE — A federal judge Wednesday confirmed WCI Communities Inc.’s reorganization plan, which includes a trust fund to help homeowners with tainted Chinese drywall in their homes, court records show.
The plan, which U.S. Bankruptcy Judge Kevin Carey confirmed during a hearing in Delaware, calls for WCI to establish the trust with $900,000 in seed money and give it a small ownership stake in the reorganized company.
The trust will have the power to sue insurers and drywall manufacturers, distributors and suppliers for homeowner damages and remediation costs.
WCI has said it believes it built at least 200 homes using defective Chinese drywall. At least a dozen of those are in the Waterlefe Golf and River Club in East Manatee.
The Bonita Springs-based builder, which also is developing the Tidewater Preserve project in Bradenton, will issue new common stock and $300 million in secured senior debt as part of the reorganization plan.
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