California Developer, Anaverde LLC, Files Chapter 11: Seeks To Sell
On January 15, 2010, California developer, Anaverde LLC, filed for chapter 11 protection in Delaware. In conjunction with the filing, Anaverde also filed a chapter 11 liquidating plan and disclosure statement. In addition, Anaverde is seeking approval of a sale process for its assets.
According to the declaration of John Miles in support of the filing, Anaverde owns a master-planned, partially entitled residential development in Palmdale, California. The project includes approximately 3500 undeveloped lots and an adjacent development known as Chandar is planned for 157 single family homes. Mr. Miles notes that the project is partially graded and has had some landscaping done, but is otherwise incomplete.
The sub-prime crisis of 2008 is listed as one of the bases for the filing. Notes Mr. Miles: “there is very little market appetite for the homes which were to be built on the project site.”
According to a motion filed with the Bankruptcy Court, Anaverde seeks to sell substantially all of its assets to a stalking horse, New Anaverde LLC, an entity formed by some of Anaverde’s equity investors.
The Honorable Mary F. Walrath has been assigned to the case. The case number is 10-10113-MFW.
