WL Homes LLC files Chapter 11

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WL Homes, Homebuilder, Seeks Bankruptcy, Cites Market Collapse

2009-02-19 15:38:43.2 GMT





By Steven Church

Feb. 19 (Bloomberg) -- WL Homes LLC, the 161-year-old homebuilder, filed for bankruptcy protection from creditors with plans to focus on developments in Southern California.

The company blamed its filing on the collapse of the real estate market, saying its 2007 sales had fallen by about half in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. The company listed assets of more than $1 billion and debt of $500 million to $1 billion. The company said it has as many as 50,000 creditors.

<strong>Irvine, California-based WL Homes, which also does business as John Laing Homes, traces its history to 1848, when its predecessor was a homebuilder in the U.K. WL Homes was formed in

1998 when John Laing merged with Watt Homes, according to court documents. In 2006 the company was purchased by Dubai-based Emaar Properties PJSC.</strong>

The case is In re WL Homes LLC, 09-10571, U.S. Bankruptcy Court, District of Delaware (Wilmington).
 
[quote author="optimusprime" date=1235088363]WL Homes, Homebuilder, Seeks Bankruptcy, Cites Market Collapse

2009-02-19 15:38:43.2 GMT





By Steven Church

Feb. 19 (Bloomberg) -- WL Homes LLC, the 161-year-old homebuilder, filed for bankruptcy protection from creditors with plans to focus on developments in Southern California.

The company blamed its filing on the collapse of the real estate market, saying its 2007 sales had fallen by about half in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. The company listed assets of more than $1 billion and debt of $500 million to $1 billion. The company said it has as many as 50,000 creditors.

<strong>Irvine, California-based WL Homes, which also does business as John Laing Homes, traces its history to 1848, when its predecessor was a homebuilder in the U.K. WL Homes was formed in

1998 when John Laing merged with Watt Homes, according to court documents. In 2006 the company was purchased by Dubai-based Emaar Properties PJSC.</strong>

The case is In re WL Homes LLC, 09-10571, U.S. Bankruptcy Court, District of Delaware (Wilmington).</blockquote>
I'm loving this...my former employer (a bank) has over $50MM in construction loans with these guys. I still remember the loan officer for the relationship on a conference call last month going into loan committee for a loan modification stating that "They are backed by huge mid-east money so the chance of us getting the loan balanced and getting repaid are high"....so funny.
 
[quote author="usctrojanman29" date=1235093947][quote author="optimusprime" date=1235088363]WL Homes, Homebuilder, Seeks Bankruptcy, Cites Market Collapse

2009-02-19 15:38:43.2 GMT





By Steven Church

Feb. 19 (Bloomberg) -- WL Homes LLC, the 161-year-old homebuilder, filed for bankruptcy protection from creditors with plans to focus on developments in Southern California.

The company blamed its filing on the collapse of the real estate market, saying its 2007 sales had fallen by about half in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. The company listed assets of more than $1 billion and debt of $500 million to $1 billion. The company said it has as many as 50,000 creditors.

<strong>Irvine, California-based WL Homes, which also does business as John Laing Homes, traces its history to 1848, when its predecessor was a homebuilder in the U.K. WL Homes was formed in

1998 when John Laing merged with Watt Homes, according to court documents. In 2006 the company was purchased by Dubai-based Emaar Properties PJSC.</strong>

The case is In re WL Homes LLC, 09-10571, U.S. Bankruptcy Court, District of Delaware (Wilmington).</blockquote>
I'm loving this...my former employer (a bank) has over $50MM in construction loans with these guys. I still remember the loan officer for the relationship on a conference call last month going into loan committee for a loan modification stating that "They are backed by huge mid-east money so the chance of us getting the loan balanced and getting repaid are high"....so funny.</blockquote>


I'm sure you are loving it based on your past posts about them. See, Karma!
 
John Laing Homes created more flops and hits in housing the last ten years. Casalon in Quail Hills and Celadon in Woodbury East were the two projects that recieved BK's raspberry awards. PANDA, consider it a blessing when you did not get a chance to buy Casalon. Its floorplans are just a tiny notch above apartments and its failure was long overdue. Larry Webb knows the true meaning of a golden parachute.



Here is a link to my old post regarding its flop project:



<a href="http://http://www.irvinehousingblog.com/forums/viewthread/595/">http://www.irvinehousingblog.com/forums/viewthread/595/</a>



How ironic JLH gets a BK award!
 
[quote author="tmare" date=1235094517][quote author="usctrojanman29" date=1235093947][quote author="optimusprime" date=1235088363]WL Homes, Homebuilder, Seeks Bankruptcy, Cites Market Collapse

2009-02-19 15:38:43.2 GMT





By Steven Church

Feb. 19 (Bloomberg) -- WL Homes LLC, the 161-year-old homebuilder, filed for bankruptcy protection from creditors with plans to focus on developments in Southern California.

The company blamed its filing on the collapse of the real estate market, saying its 2007 sales had fallen by about half in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. The company listed assets of more than $1 billion and debt of $500 million to $1 billion. The company said it has as many as 50,000 creditors.

<strong>Irvine, California-based WL Homes, which also does business as John Laing Homes, traces its history to 1848, when its predecessor was a homebuilder in the U.K. WL Homes was formed in

1998 when John Laing merged with Watt Homes, according to court documents. In 2006 the company was purchased by Dubai-based Emaar Properties PJSC.</strong>

The case is In re WL Homes LLC, 09-10571, U.S. Bankruptcy Court, District of Delaware (Wilmington).</blockquote>
I'm loving this...my former employer (a bank) has over $50MM in construction loans with these guys. I still remember the loan officer for the relationship on a conference call last month going into loan committee for a loan modification stating that "They are backed by huge mid-east money so the chance of us getting the loan balanced and getting repaid are high"....so funny.</blockquote>


I'm sure you are loving it based on your past posts about them. See, Karma!</blockquote>
Karma can be a bitch. I do hope that some of the good people at the bank land on their feet.
 
So much for the warranty repairs on the following:



NPS - Vintners Reserve

OC - Cobblestone and Cricket Club

PS - Sendero

QH - Casalon

WI - Summerplace

WB - Juliet's Balcony

WB - Stonetree

WB - Four Quartets

and all seven tracts at Tustin Field...
 
Check out Emaar's stock price.





<img src="http://tools.euroland.com/investortools/ae-emaar/tmplChart.asp?GUID=E7BE154A1D02204E89F3CEB8CFE7342D&Lang=english&ShareName=Emaar+Properties&Isin=AE0005802576&MarketID=22&gtype=1&ptype=0&UserCur=AED&DaysInPeriod=366&StartPeriod;=&X=372&Y=350" alt="" />
 
[quote author="ipoplaya" date=1235099048]So much for the warranty repairs on the following:





and all seven tracts at Tustin Field...</blockquote>


Houses on toxic land without warranty. Homeowners can't wait to buy a plasma from Circuit City to hang in their John Laing homes.
 
[quote author="ipoplaya" date=1235099048]So much for the warranty repairs on the following:



NPS - Vintners Reserve

OC - Cobblestone and Cricket Club

PS - Sendero

QH - Casalon

WI - Summerplace

WB - Juliet's Balcony

WB - Stonetree

WB - Four Quartets

and all seven tracts at Tustin Field...</blockquote>


Will they still honor the warranty?
 
[quote author="tenmagnet" date=1235177973][quote author="ipoplaya" date=1235099048]So much for the warranty repairs on the following:



NPS - Vintners Reserve

OC - Cobblestone and Cricket Club

PS - Sendero

QH - Casalon

WI - Summerplace

WB - Juliet's Balcony

WB - Stonetree

WB - Four Quartets

and all seven tracts at Tustin Field...</blockquote>


Will they still honor the warranty?</blockquote>


A warranty is an executory contract which is valid unless rejected in the bankruptcy case. My hunch is that the warranties will be assumed (not rejected) because in any Chapter 11 exit strategy other than liquidation (i.e. sale or earn-out plan), the debtor's goodwill will be very important to a successful exit from Chapter 11 and there are few ways of destroying goodwill as effectively as cancelling warranties.
 
[quote author="no_vaseline" date=1235179413]My opinion is that there is no goodwill left to destroy in housing and the warranties are worthless.</blockquote>


I would agree.
 
[quote author="ipoplaya" date=1235183441][quote author="no_vaseline" date=1235179413]My opinion is that there is no goodwill left to destroy in housing and the warranties are worthless.</blockquote>


I would agree.</blockquote>


One more sign of the apocalypse.
 
[quote author="no_vaseline" date=1235190745][quote author="ipoplaya" date=1235183441][quote author="no_vaseline" date=1235179413]My opinion is that there is no goodwill left to destroy in housing and the warranties are worthless.</blockquote>


I would agree.</blockquote>


One more sign of the apocalypse.</blockquote>


LOL
 
[quote author="High Gravity" date=1235178379][quote author="tenmagnet" date=1235177973][quote author="ipoplaya" date=1235099048]So much for the warranty repairs on the following:



NPS - Vintners Reserve

OC - Cobblestone and Cricket Club

PS - Sendero

QH - Casalon

WI - Summerplace

WB - Juliet's Balcony

WB - Stonetree

WB - Four Quartets

and all seven tracts at Tustin Field...</blockquote>


Will they still honor the warranty?</blockquote>


A warranty is an executory contract which is valid unless rejected in the bankruptcy case. My hunch is that the warranties will be assumed (not rejected) because in any Chapter 11 exit strategy other than liquidation (i.e. sale or earn-out plan), the debtor's goodwill will be very important to a successful exit from Chapter 11 and there are few ways of destroying goodwill as effectively as cancelling warranties.</blockquote>


I read the 72 page filing that was linked at OCregister.com and JLH is specifically stating that they intend to honor both the 3-year door-to-door and 10-year structural warranties in their southern California communities. In addition, they intend to continue paying HOA subsidies in those Southern Cal communities that are not built out yet. However it appears that JLH communities outside of Southern California are out of luck, since it looks like they are permanently shutting down operations in those areas.
 
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