Brightwater builder skips more loan payments (Irivine Based Company)

California Coastal Communities, the homebuilder that’s developing 356 homes overlooking the Bolsa Chica wetlands, announced that it has missed $759,000 in loan payments due this month, an event that could trigger bankruptcy unless its lenders restructure its debt.

It’s the second time this month that the Irvine-based homebuilder said it has missed loan payments. The firm behind the Brightwater development announced three weeks ago that it skipped a $1.7 million debt payment due at the end of September.
The company has been saying since August that it would miss payments this year due to slow sales. It’s seeking to restructure $81.9 million in revolving loan debt as well as a $100.3 million term loan.
In a filing with the Securities and Exchange Commission, the company said further:

“As a result of not having made the interest payments under the Revolving Loan Agreement and the Term Loan Agreement (the ‘Loan Agreements’), a triggering event has occurred which could give rise to the immediate acceleration of the payment of all outstanding principal and accrued interest under the Loan Agreements. …
“(California Coastal) is continuing to negotiate with its lenders in an effort to obtain a consensual restructuring of its obligations under the Loan Agreements. …
“In the event that these negotiations are not successful, (California Coastal) believes that any efforts to attempt to enforce the payment obligations or otherwise accelerate the indebtedness under either of the Loan Agreements would be automatically stayed under Chapter 11 of Title 11 of the United States Bankruptcy Code in the event that (California Coastal) elects to file for protection under such laws.”

To see the full SEC filing, CLICK HERE!

- Via OC Register