WL Homes' unsecured creditors committee calls for case conversion

By Caroline Salls

Pittsburgh, May 7 - WL Homes, LLC's official committee of unsecured creditors has asked the U.S. Bankruptcy Court for the District of Delaware to convert the company's Chapter 11 bankruptcy case to Chapter 7 for liquidation, according to a Wednesday court filing.

According to the motion, the company's "reorganization efforts appear to exist solely at the behest and for the benefit of the debtors' insider pre-petition lender and corporate parent Emaar America Corp."

"Since no tangible recovery is being offered to [non-insider unsecured creditors], there is no hope of a plan of reorganization being confirmed in these cases," the committee said in the motion.

In addition, the committee said the company has shut down its operations and plans to liquidate its assets to the insiders rather than liquidate.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.