Orleans Homebuilders to sell most assets for $170 mln to NVR

April 14 (Reuters) - Bankrupt housing developer Orleans Homebuilders Inc OHBIQ.PK said it agreed to sell substantially all its assets to rival NVR Inc (NVR.N) for about $170 million.

NVR will act as the "stalking horse" bidder and set the floor at a court-supervised auction on June 23, Orleans said in a statement.

The agreement excludes two communities in New York state that are expected to be sold separately.

The bid procedures for the assets are yet to be approved by the bankruptcy court and competing bids can be submitted until June 16.

Orleans said the $170 million purchase price is subject to certain "defined working capital adjustments."

NVR will also assume certain specific liabilities, including $52.6 million of bank letters of credit related to the acquired communities as part of the deal, Orleans said.

Bensalem, Pennsylvania-based Orleans, which operates mainly in the eastern United States, filed for bankruptcy protection in March after defaulting on a credit facility.

The company's Alambry Funding mortgage services unit was not part of the bankruptcy filing.

The case is In re Orleans Homebuilders Inc, U.S. Bankruptcy Court, District of Delaware, No. 10-10684. (Reporting by Santosh Nadgir in Bangalore; Editing by Gopakumar Warrier)