IRVINE, CA-California Coastal Communities has found an investorwho has agreed to provide $182 million in financing to help thedevelopment company exit Chapter 11 bankruptcy. The company, whichis the parent of home builder Hearthside Homes and Signal Landmark,which owns 110 acres on the Bolsa Chica Mesa, says that the newfinancing will replace its existing secured debt.

The commitment for the financing is subject to approval by theUS Bankruptcy Court for the Central District of California, and tothe negotiation and execution of definitive loan documents.California Coastal CEO Raymond J. Pacini commented in a preparedstatement that the new financing, if approved by the court, “willprovide a more certain exit from bankruptcy without the risk oflitigation.” Pacini said further that one result of the financingwill be that that California Coastal will be able to “sell homes ata pace that allows the company to benefit from the inevitablerecovery in coastal home prices.

California Coastal and some of its direct and indirect whollyowned subsidiaries filed Chapter 11 petitions in October 2009. TheIrvine-based company said in its filings and press statements atthe time that it sought to extend the maturity on $182 million infinancing for its 356-home Brightwater development overlooking theBolsa Chica wetlands in Huntington Beach.