LOS ANGELES--(Business Wire)--
Unable to reach agreement with lenders on a plan to modify and
restructure its debt, LandSource Communities Development LLC
(LandSource) and certain of its subsidiaries today filed voluntary
petitions under chapter 11 of the U.S. Bankruptcy Code.
For several months LandSource has attempted to reach agreement
with its lenders on an interim plan that would provide the needed time
for a complete review of its financial situation and the development
of a long-term solution to the situation in which the partnership,
like others in the real estate industry, currently finds itself.
"LandSource believes chapter 11 provides the most effective means
for the partnership to preserve the value of its business, meet
postpetition obligations and maintain constituents' confidence while
it works with creditors to achieve a long-term restructuring," said
spokeswoman Tamara Taylor.
LandSource said that, notwithstanding further retrenchments in
both the California and national real estate markets, it expects not
only to survive the current real estate downturn and credit crunch,
but to flourish once the market stabilizes.
LandSource has received commitments for debtor in possession (DIP)
financing from a group of lenders led by Barclay's Bank, including a
$135 million revolving line of credit that will enable the company to
meet postpetition obligations and fund operations during the chapter
11 period.
LandSource said that the DIP facility assures that vendors,
contractors and consultants will be paid for goods and services
provided after the June 8, 2008 filing date.
LandSource, which operates in Arizona, California, Florida, New
Jersey, Nevada and Texas, is involved in the planning and development
of master planned communities and transforming undeveloped land into
ready-to-build home sites and commercial properties. With the
exception of one development project in Marina del Rey, California,
LandSource does not build homes or commercial properties.
The filing occurred in the U.S. Bankruptcy Court for the District
of Delaware in Wilmington.
For more information, please visit the claim agent's website at
www.kccllc.net/landsource. LandSource has also established a toll-free
information line for interested parties. The number is 888-625-9272.
Sitrick and Company
Tamara Taylor, 310-788-2850
Copyright Business Wire 2008
