WCI Files for Chapter 11

WCI Communities, a developer and builder of luxury homes based in Bonita Springs, Fla., has announced a Chapter 11 bankruptcy filing for itself and over 100 subsidiaries, but excluding WCI Mortgage and certain other WCI ventures. WCI said WCI Mortgage, an affiliate of Wells Fargo Home Mortgage, will continue to honor all its obligations. The company also announced the departure of Jerry L. Starkey as chief executive officer and his replacement by David L. Fry as interim president and CEO. Carl C. Icahn, chairman of WCI's board, said the bankruptcy filing was necessary "because of the recent failed effort to obtain financing and the recognition that the company's entire $1.8 billion of debt may soon be in default." The filing involved approximately 130 of WCI's wholly owned subsidiaries, but excluded WCI Mortgage, Prudential Florida WCI Realty, and "certain other joint ventures in which WCI is a partner," the company reported. WCI said the departure of Mr. Starkey was mutually agreed upon, and that he will be available to the company for consultation. WCI can be found online at http://www.wcicommunities.com.