The number of Sun-Cal Cos. Developments that have faced bankruptcy petitions increased by three this week, bringing to 15 the total of Irvine-based, SunCal-Lehman Brother projects in California that are under U.S. Bankruptcy Court supervision.
The total of SunCal voluntary and involuntary petitions submitted by attorneys reached 15 after the filing of the Northlake development in Castaic and its Oak Valley and Heartland projects in Beaumont, along with a petition against the SunCal Marblehead development in San Clemente.
The involuntary petitions take place when one of the parties, in this case Lehman Brothers, who financially backed up the projects, does not consent to a voluntary bankruptcy filing. Thus, involuntary bankruptcy is the only way SunCal can get their projects into bankruptcy court, in order to get additional financing.
Officials of SunCal also disclosed that involuntary bankruptcy petitions are to be expected within days on the other five developments controlled by Lehman. David Soyka, SunCal company spokesman, said that Lehman has cut off critical funding for their developments since the investment bank had its lawyers submit their petition for bankruptcy in September.
Soyka said that SunCal has lined up a partner willing to provide $75 million. But SunCal’s proposed bankruptcy lender is requiring priority over Lehman’s liens before providing the financing.
Some of the SunCal Cos. Developments filed for bankruptcy are located in the cities of San Juan Capistrano and San Clemente in Orange County. Others are located in Riverside County, in the cities of Yucaipa, Modesto, Rubidoux and Beaumont.
Read a related article at the OC Register.
