Bankruptcy judge confirms plan for big Cal project
LOS ANGELES — A U.S. Bankruptcy Court judge in Delaware has confirmed a deal that allows a massive Southern California residential development to emerge from bankruptcy protection.
Lennar Corp. announced Monday that Judge Kevin J. Carey’s confirmation of the plan allows the Miami-based home builder to buy about 15 percent of the Newhall Ranch project on the last major tract of undeveloped land in Los Angeles County, along with other properties, for approximately $140 million.
The deal also puts an affiliate of Lennar in charge of the planned 21,000-home development.
The homebuilder had a 16 percent stake in LandSource Communities Development LLC before falling land prices pushed the venture into Chapter 11 protection in June 2008.
Creditors in the bankruptcy case are set to get equity in exchange for the more than $1 billion they were owed.