UPDATE 1-Home builder TOUSA says will not reorganize

NEW YORK, March 23 - Bankrupt U.S. home builder TOUSA Inc said on Monday it plans to sell off its remaining assets and complete homes currently under construction, rather than reorganize itself.

The Hollywood, Florida-based company, which filed for bankruptcy protection in January 2008, said in a statement that it is in discussions with various parties about the sale of its financial services businesses and its home building operations in Texas.

But TOUSA said it will no longer generate new build-to-order sales, and will focus on selling its remaining inventory of homes, and completing and closing homes that are in the process of being built.

TOUSA said it would expect its wind-down process to continue over a few years, so as to maximize recoveries for its creditors. It will not emerge from bankruptcy as a reorganized entity.

The company also said it will continue downsizing staff at its corporate offices and divisions as part of the wind-down.

TOUSA had been in preliminary discussions with Standard Pacific Corp about a possible asset sale last year, but said in February that those discussions had ceased. It had also earlier made an attempt at reorganization under a "stand-alone" plan that would have converted much of its debt to equity.

The case is In re: TOUSA Inc, U.S. Bankruptcy Court, Southern District of Florida, No. 08-10928.