Where There’s Laird, There’s a Chapter 11: Developer LandSource Files

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Once again, there’s Laird, god of big-wave surfing, launcher of a new clothing line and, most importantly, the unofficial Law Blog Bankruptcy Mascot. The latest from the bankruptcy world, as the Chapter 11 wave continues to crest: Real estate partnership LandSource Communities Development LLC filed for Chapter 11 protection in Delaware. Here are stories from the WSJ’s Michael Corkery and Reuters. Repping LandSource is Marcia Goldstein, Debra Dandeneau, and Robert Lemons of Weil Gotshal. Local counsel from Richards, Layton & Finger P.C. are also on the case.

LandSource, based in Aliso Viejo, Calif., is a large property developer backed by the largest California pension fund, Calpers. According to Reuters, its primary investment is The Newhall Land and Farming Company, which owns 15,000 acres of land north of Los Angeles. At the end of April, a Standard & Poor’s report said the company would soon seek protection from creditors, citing unnamed lenders. S&P said the company’s cash had declined to about $25 million from about $115 million in early February.

The company has reportedly lined up $135 million in debtor-in-possession financing from a host of lenders led by Barclay’s bank. According to Dow Jones Newswires Peg Brickley, the terms of the financing are on the onerous side: Within 20 days of the filing, they must file a motion to retain a chief restructuring officer to help senior management with running the company.

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