William Lyon Homes, the Newport Beach, Calif.-based developer, announced last week that it will file for bankruptcy protection, the Orange County Register reported. The filing is part of a debt reorganization plan that will likely give control of the company, run by Orange County builder Gen. William Lyon, to a New York hedge fund.
Lyon Homes announced that “it has commenced the solicitation of votes for a prepackaged plan of reorganization to facilitate its recapitalization and ensure it remains a leading homebuilder for years to come.” The plan is to quickly exit bankruptcy with a new financial structure by the end of the first quarter 2012.
Lyon Homes added that this plan “contemplates no impairment of any business relationships and full payment of all obligations to the company’s business partners, vendors and employees.”
Two weeks ago, Lyon Homes and its key financial partners agreed to a recapitalization that would bring in $85 million in fresh cash and shrink and extend Lyon Homes’ debts.
To read more, click here.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development