LandSource eyes cash collateral to fund case after DIP loan maturity

By Caroline Salls

Pittsburgh, May 13 - LandSource Communities Development, LLC requested court approval of a debtor-in-possession facility amendment that will allow the company to use cash collateral beyond the May 31 DIP loan maturity date to fund operations through the asset sale and plan of reorganization confirmation process, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The cash collateral use will expire on the earlier of July 31 and the date the court denies confirmation of a plan of reorganization proposed by DIP loan agent Barclays Bank plc.

The company said the amendment also allows it to keep the proceeds of its asset sales to provide enough liquidity to take it through the rest of its bankruptcy case.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.