NEW YORK, Feb 5 (Reuters) - Sirva Inc SIRV.PK, the provider of moving services and parent of Allied Van Lines, filed for bankruptcy protection on Tuesday after struggling with too much debt in the U.S. housing downturn.

The Westmont, Illinois-based company and close to 60 affiliates filed for protection in the U.S. bankruptcy court in Manhattan. It has $924.5 million of assets, $1.23 billion of debt, and more than 100,000 creditors, according to the filing. Sirva said the bankruptcy covers only its U.S. operations.

Sirva expects to stay in business while it restructures, and emerge from bankruptcy within 60 to 90 days.

Sirva sought court protection after reaching an agreement with lenders on a "prepackaged" bankruptcy that will reduce debt by $200 million and annual interest costs by $54 million.

It said the filing will allow it to "free up its operations from a heavy debt service burden and to strengthen its balance sheet" to weather the weak U.S. housing market.

"The debtors' home inventory is growing, and growing more quickly, the homes stay in inventory longer, and many homes must be sold at a loss," Sirva said in a court filing. "These factors have resulted in lower revenues and profitability and increased use of working capital, which has in turn adversely affected the debtors' liquidity."

On Nov. 9, Sirva said a write-down, a loss on home sales, and losses from taking homes into inventory contributed to a $10.4 million third-quarter loss, on revenue of $1.17 billion.

"We wish we could do something about the U.S. real estate market, but we can't," Chief Executive Robert Tieken said at the time.

The company's largest shareholders include private equity firm Clayton, Dubilier & Rice, which owns more than 31 percent of the shares, and ValueAct Capital Partners LP, which owns more than 20 percent, the bankruptcy petition shows.

Sirva said it has lined up $150 million of financing to keep operating, and that this will convert into a $215 million senior secured credit facility once it emerges.

Sirva conducts more than 300,000 relocations per year, and handles such services as moving, home purchases and sales, and home closings and settlements.

Shares of Sirva closed Tuesday down 11.1 cents, or 88.8 percent, at 1.4 cents. They traded as high as $4.48 last Feb. 22. (Editing by Derek Caney, Gary Hill)