LandSource creditors committee seeks more time to analyze DIP financing motion

By Caroline Salls

Pittsburgh, June 24 - LandSource Communities Development, LLC's official committee of unsecured creditors has asked the U.S. Bankruptcy Court for the District of Delaware to postpone the hearing for approval of the company's debtor-in-possession financing to allow the committee to review the motion and file objections, according to a Tuesday court filing.

Specifically, the committee is asking the court to postpone the hearing to the week of July 7 from June 30.

According to the motion, the committee was only appointed two business days ago, and there is not enough time between now and June 30 to conduct discovery on the financing motion or raise any objections.

The committee said the DIP lenders have made "a host of demands in return for their offered financing, which are extraordinary and potentially devastating to the interests of unsecured creditors."

In addition, the committee said it is not clear what leverage unsecured creditors will have left if the financing is approved on the terms provided in the DIP facility motion.

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

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