WL Homes' Chapter 7 trustee gets court OK to sell assets to Emaar

By Jennifer Lanning Drey

Portland, Ore., Aug. 27 - WL Homes, LLC's Chapter 7 trustee obtained court approval to sell assets including property, receivables, contracts and intellectual property to Emaar America Corp. and its wholly owned subsidiary, EJL Homes, LLC, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, 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.

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, 2009. Its Chapter 11 case number is 09-10571.

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