Maronda Homes seeks final decree after Chapter 11 plan takes effect

By Caroline Salls

Pittsburgh, Jan. 10 - Maronda Homes, Inc. has asked the U.S. Bankruptcy Court for the Western District of Pennsylvania to enter a final decree in its Chapter 11 case and said consummation of its reorganization plan has occurred, according to a Tuesday court filing.

As previously reported, the plan was confirmed on Dec. 14. Maronda said it closed on an exit facility with agent Bank of America, NA on Jan. 6.

According to the disclosure statement, the plan called for exit financing in an amount necessary to make all payments required under the plan and to operate their businesses following emergence.

The company said in the plan that the exit facility would allow reorganized Maronda Homes to borrow the lesser of $128 million, reduced by $3 million at the end of each quarter beginning in 2012, or the borrowing base availability based on the appraised value of the company's real property set in a June 30, 2011 term sheet.

The maturity date of the exit financing is the earlier of three years from the effective date or Sept. 30, 2014.

Because it has already made the payments required by the plan, and no deposit is required, "consummation" has occurred, Maronda said in the filing.

Under the plan, all classes of creditors will be paid in full.

Specific treatment of creditors will include:

• The Bank of America secured claim will be paid in full for principal, interest, fees and expenses, subject to a $12 million offset amount;

• The GE Commercial Finance Business Property Corp. secured claim will be paid in full for all past due principal, interest and late fees, and the balance of the debt will be subject to and paid in accordance with existing loan documents; and

• Holders of administrative claims and general unsecured claims will be paid in full.

Maronda, a Clinton, Pa., homebuilder, filed for bankruptcy on April 18, 2011. Its Chapter 11 case number is 11-22418.

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