Fairfield Residential tweaks new money reorganization plan investment

By Caroline Salls

Pittsburgh, March 4 - Fairfield Residential LLC filed an amended plan of reorganization and disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Delaware that changes the proposed new money investment.

Under the amended plan, a new company will hold all of the reorganized company's equity interests and will acquire a $119.5 million new money investment, consisting of a $19.5 million initial investment, a subsequent $50 million investment and a commitment to co-invest $50 million in multi-family acquisitions, as well as further investment from members of the new company's management.

Under the original plan, the company was scheduled to receive a new money investment of at least $115 million, and if the new money investment was not received, holders of general unsecured claims would have received 85% of the new common stock in the reorganized company in exchange for a $9 million cash contribution, and members of management would have received 15% of new stock in exchange for a $1.25 million management investment.

The amended plan eliminates a potential investment from holders of general unsecured claims.

The plan confirmation hearing is scheduled for April 22.

Fairfield, a San Diego-based multifamily real estate operating company, filed for bankruptcy on Dec. 20. Its Chapter 11 case number is 09-14378.

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