Bankruptcy

LandSource real estate partnership files for bankruptcy

By J. Michael McBride

LandSource Communities Development LLC, a California property developer backed by Calpers, filed for bankruptcy protection under Chapter 11 Sunday. Calpers (California Public Employees' Retirement System) is the largest public pension fund in the United States.

LandSource's largest investment is The Newhall Land and Farming Company, that owns 15,000 acres north of Los Angeles in Santa Clarita Valley, California. The undeveloped property declined in value and triggered an additional charge on the $1.24 billion loan LandSource has been trying to restructure for months. When LandSource missed it's last payment it received a default notice on April 22nd.

LandSource spokeswoman, Tamara Taylor, said, "LandSource believes chapter 11 provides the most effective means for the partnership to preserve the values of its business...while it works with creditors to achieve a long-term restructuring".

You can read the entire articles at:
http://news.yahoo.com/s/ap/20080609/ap_on_bi_ge/calpers_land_partnership_2&printer=1;_ylt=A9G_R3tFXE1IkfoAWR9v24cA
and
http://news.yahoo.com/s/nm/20080609/bs_nm/landsource_dc_1&printer=1;_ylt=AgBfFtrUdCrRoHM6OCC5G3.b.HQA

Chandra

Full post as published by Texas Lawyer Blog on June 10, 2008 (boomark / email).