Lehman takes title to SunCal affiliates' California property portfolio

By Caroline Salls

Pittsburgh, April 30 - Lehman Brothers Holdings Inc. said it has taken title to a portfolio of California properties formerly owned by affiliates of the SunCal companies as a result of the occurrence of the effective dates of the SunCal bankruptcy plans.

According to a company news release, the SunCal plans were confirmed in the SunCal bankruptcy cases in California in October 2011 and approved by the U.S. Bankruptcy Court for the Southern District of New York in connection with Lehman's bankruptcy case in July 2011.

The effectiveness of the plans will result in Lehman, which had provided financing for these development sites, obtaining ownership of 14 different projects throughout California, the release said.

"Our strategy for the SunCal portfolio has been to gain control over the assets so that we could position them in a way that would provide the best result possible for Lehman creditors," Lehman head of real estate Jeff Fitts said in the release.

"It has been a long and complex process, and this is a major milestone."

New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company emerged from bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on March 6.

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