John Laing Morphs into a Scourge Dubai
My how the mighty have fallen. John Laing Homes once sat upon a pedestal so lofty that even its larger private competitors had to wonder why they couldn’t catch the lightning in a bottle that the Irvine-based Laing seemed to eat, sleep, and breathe.
Now look. Big Builder executive editor Sarah Yaussi reports today:
According to paperwork filed in the U.S. Bankruptcy Court for the District of Delaware, WL Homes, John Laing’s corporate mantle, collectively owes Bank of America, Wachovia Bank, and RFC Construction Funding $283.3 million. The company also owes $67.3 million in secured project loans to Wells Fargo Bank, Housing Capital Co., First Bank of Oak Park, Indy Mac Federal Bank, and KeyBank.
At issue is the fact that the company was forced to file for bankruptcy protection last Thursday after its parent corporation refused to continue funding its operations on an unsecured basis. By providing the company with debtor-in-possession (DIP) financing, Emaar would gain super-priority status over secured lenders, ensuring Emaar would be repaid first. The secured lenders seek “adequate protection,” meaning they want monetary guarantees that the DIP financing will not diminish the value of the collateral securing their loans.
Check out the story for startling insight into how the company operated as it barrelled to the brink of its undoing.
In a related matter, Pasquinelli Homes is in a mad dash for survival, trying to sell and trying to buy time with lenders as it fights the good fight for a future. Big Builder senior editor Lynn Norusis reports.
While some in the industry say the demise or downsizing of the company is probable–most likely in the harder-hit markets the company has projects, such as its home base of Illinois–bankruptcy documents have yet to be filed, and the company has not made any new announcements concerning the future of Pasquinelli/Portrait Homes.
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