WL Homes' trustee asks court to approve $52 million sale of assets

By Jennifer Lanning Drey

Portland, Ore., July 14 - WL Homes, LLC's Chapter 7 trustee requested court approval of the proposed $52 million sale of assets that include property, receivables, contracts and intellectual property, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The stalking horse bidder is Emaar America Corp., along with its wholly owned subsidiary EJL Homes, LLC.

The purchase price includes $7.0 million in cash, forgiveness of $6.3 million plus interest in pre-bankruptcy secured claims, forgiveness of $5.0 million plus interest in debtor-in-possession facility obligations and forgiveness of $2.5 million of trustee facility debt.

In addition, Emaar will assume $23.49 million of WL Homes' HCC obligations, $2.12 million of its mechanics lien and $4.99 million of its development obligations.

Emaar has also agreed to subordinate its $408.38 million of pre-bankruptcy unsecured obligations in an amount to be determined.

The sale is subject to higher offers.

Under the agreement, the sale must close no later than Sept. 30.

WL Homes, an Irvine, Calif.-based homebuilder, filed for bankruptcy on Feb. 19. Its Chapter 11 case number is 09-10571.

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