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SAN DIEGO-Fairfield Residential LLC and certain of its subsidiaries have filed voluntary Chapter 11 bankruptcy petitions and have agreed to a reorganization plan with lenders. Fairfield, which maintains corporate offices in San Diego and Dallas, says on its web site that the company and its “significant lender groups” have agreed to the framework of “a consensual plan of reorganization that will enable continuity of Fairfield’s property management, asset management, construction services and general partner functions for the benefit of its creditors and other stakeholders.”

The reorganization plan maintains Fairfield’s existing infrastructure in a new operating company that will include key personnel and will allow the company to “facilitate debt and equity solutions, provide additional stability to its joint ventures and manage its properties,” the company says.

Some of Fairfield’s assets that are not assigned to the new operating company will be assigned to a liquidating trust. The plan also provides that the new operating company may obtain new capital, and the company “has secured interest from a number of parties to provide this financing,” Fairfield says.

Christopher Hashioka, president and CEO of Fairfield, said in a prepared statement that, although the relatively strong demand for multifamily rental units during the recession “hasallowed our businesses to continue to perform well,” the “unprecedented collapse of the US real estate and capital markets has made it difficult, if not impossible, for Fairfield to continue without restructuring its financial obligations.”

In addition to Fairfield Residential LLC, 14 additional subsidiaries were included in the bankruptcy filing. Fairfield’s individual property entities were not part of the bankruptcy proceedings.

Fairfield developes, invests in, manages and operates multifamily properties in 40 geographic markets across the country, with institutional and private investors as its capital sources. It employs more than 2,500 real estate professionals in offices throughout the US. The company says that it will use its web site to communicate with its stakeholders throughout its reorganization process.

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