California Coastal Communities Inc said on Wednesday it filed for Chapter 11 protection to modify and eliminate certain debt covenants and to extend the maturity on about $182 million loans related to one of its projects.
The residential land development and homebuilding company said in a statement that it had been negotiating with its lenders for an extension on maturity dates and changes to the repayment schedule.
Unfortunately, without unanimous approval we have no viable alternative but to restructure the debt through the voluntary reorganization process we are pursuing, Chief Executive Raymond Pacini said.
In a petition filed late on Tuesday, the company listed total assets of $291 million and total debt of $231 million.
Insurance Company of the West was named as the largest unsecured creditor with a claim of about $22.6 million.
Shares of Irvine, California-based California Coastal Communities plunged more than 43 percent to 65 cents Wednesday morning on Nasdaq.
According to the company's website, it operates in Southern California and its principal subsidiaries are Signal Landmark and Hearthside Homes Inc.
The company said it will continue normal homebuilder and sales operations.
The case is In re: California Coastal Communities Inc, U.S. Bankruptcy Court, Central District Of California (Santa Ana), No 8:09-bk-21712-TA. (Reporting by Santosh Nadgir in Bangalore; Editing by Gopakumar Warrier)