(Carl Cronan is editor of RealEstateFlorida.)
BONITA SPRINGS, FL-In an expected move given the current stateof the nation's housing market, WCI Communities Inc. filed forChapter 11 reorganization under the US Bankruptcy Code on Monday.The company, which is involved in numerous upscale condominiumdevelopments throughout Florida, says it plans to operate as usualduring its restructuring process.
"The filing became necessary because of the recent failed effortto obtain financing and the recognition that the company's entire$1.8 billion of debt may soon be in default," WCI Chairman CarlIcahn stated in a release. He added that the last straw occurredwhen holders of the company's $125 million in convertible notesthat were due Tuesday rejected an earlier exchange offer that wouldhave paid a higher interest rate in five years.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
