San Jose Bankruptcy Attorney comments on the recent bankruptcy filing by California Coastal Communities Inc.
San Jose Bankruptcy Attorney comments on the recent bankruptcy filing by California Coastal Communities Inc.
The downturn in the economy and tightening of the credit markets claimed another victim when California Coastal Communities Inc. filed for Chapter 11 bankruptcy reorganization last week. California Coastal, best known for its Brightwater project in Huntington Beach, and ten of its affiliate companies are seeking bankruptcy protection while they develop a reorganization plan that will extend the debt on its Brightwater project.The company had been seeking to restructure its debt and had recently defaulted on loan payments tied to the Brightwater development. Brightwater is a 350+ home development under development that has 70 homes sold and another 17 homes are in escrow. The recent collapse of the housing market has negatively affected new home sales nationwide, and Brightwater has been no exception.
The list of creditors listed in the Chapter 11 filing includes the County of Orange and the City of Huntington Beach, owed $9.7 million and $4.6 million respectively. The company is using the Chapter 11 bankruptcy reorganization as a financing tool to negotiate a restructuring with its core lenders. California Coastal intends to continue to deliver homes on schedule and honor all warranties related to the Brightwater development, one of the last master planned communities to be developed along the California coast.
California Coastal Communities Files For Bankruptcy Protection, RTT News, October 28, 2009
Developer California Coastal Files for Bankruptcy, Orange County Business Journal, October 28, 2009
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