Southmark Files for Chapter 11 Protection

From Reuters

Southmark Corp., a large, diversified financial services and real estate company, said it has filed for protection from creditors under Chapter 11 of the federal bankruptcy code.

The move was expected after Southmark reported May 16 that it lost $1.04 billion in the third quarter ended March 31, which placed it in violation of net worth agreements on some of its publicly traded bonds.

At the time, Southmark Chairman Arthur Weiss said: "We are engaged in gathering the data necessary to propose a plan for restructuring our indebtedness."

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