A bankruptcy judge has approved revisions to a proposed plan for WCI Communities to emerge from bankruptcy, which includes a trust account for claims against insurers or suppliers regarding defective Chinese drywall.

U.S. Bankruptcy Judge Kevin Carey approved what is known as a Disclosure Statement for the revisions to the proposed bankruptcy plan on Friday.

“The revised bankruptcy plan was the product of negotiations and is the first step at finding a solution for homeowners impacted by defective drywall,” said Mike Ryan, an attorney in Fort Lauderdale who represents dozens of homeowners with Chinese drywall claims.

“Under the proposed plan, the trust will be empowered to bring lawsuits aimed at obtaining the maximum amount of recovery to fund remediation and the pay for the damages to the homeowners,” Ryan said.

He said the proposed plan also contemplates the trust will have a small equity stock stake in the new-WCI for the benefit of defective drywall claimants.

In January, WCI said in an SEC filing that it was setting aside $11 million for homes that needed air conditioning coil replacement, “which may or may not be related to the Chinese drywall.”

Miami-based Lennar Corp. said recently it has set aside $39.8 million to pay for the Chinese drywall damages, while its insurance will cover $20.7 million of the damages and it sues manufacturers and suppliers.

State lab tests have shown Chinese drywall to emit sulfur gases when exposed to moisture. The fumes are associated with complaints of corrosion in electrical wiring and air conditioners, foul odors, and alleged health problems. The drywall was imported from China and installed during the building boom from 2004 to 2007.

The WCI trust would include $900,000 to pursue claims.

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