Los Angeles Business Journal: Lehman Brothers funding waylays SunCal venture
SunCal Bickford Ranch LLC, a partnership connected to Irvine developer SunCal Cos. that’s developing a 1,942-acre community between Lincoln and Penryn, on Thursday filed for Chapter 11 bankruptcy.
The company said the action follows the bankruptcy of Lehman Brothers, which has been the sole source of funding for the Bickford Ranch project. SunCal said in a news release that despite repeated efforts, “Lehman has provided no meaningful response to funding requests and appears to be either unwilling or unable to fulfill its obligations ... Lehman’s lack of action has effectively starved the development of the capital it needs to pay consultants and contractors, be a good neighbor to nearby residents, perform on-site maintenance and adhere to applicable health and safety regulations.”
The Chapter 11 applies solely to the Bickford Ranch partnership and not to SunCal itself.