LandSource final DIP financing hearing pushed back to July 14

By Caroline Salls

Pittsburgh, June 25 - LandSource Communities Development, LLC's final debtor-in-possession financing hearing was postponed to July 14 from June 30 after the company's official committee of unsecured creditors requested more time review the motion and file objections, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the committee was only appointed two business days before it filed the postponement motion, and the original June 30 hearing date did not give it enough time to conduct discovery on the financing motion or raise any objections.

The committee said the DIP lenders have made "a host of demands in return for their offered financing, which are extraordinary and potentially devastating to the interests of unsecured creditors."

In addition, the committee said it is not clear what leverage unsecured creditors will have left if the financing is approved on the terms provided in the DIP facility motion.

The deadline for filing objections to the DIP financing motion is July 7.

LandSource, a Los Angeles-based developer of master-planned communities, filed for bankruptcy on June 9. It Chapter 11 case number is 08-11111.

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