If your keeping track of these things, SunCal was going to build a project in Hesperia. It looks like they went bankrupt and let the property go back to the owners. Here's a link to the SunCal Hesperia project called Majestic Hills www.suncal.com/community/?id=40
O.C. developer $300 million in the hole
Orange County Register October 23rd, 2008, 4:52 pm · Posted by John Gittelsohn
California properties being developed by Irvine-based SunCal Companies are more than $300 million under water on projects with $441 million in debt, attorneys said in U.S. Bankruptcy Court in Santa Ana.
“There is no cash here with which to operate,” said Andrew Troop, attorney for Lehman Commercial Paper Inc., which is owed $235 million as a first lien holder on the SunCal properties. “There’s not a real estate market here.”
Ironically, the parent of Lehman Commercial Paper Inc., Lehman Bros., went bankrupt in September.
On Sept. 10, creditors forced partnerships in three SunCal developments into involuntary Chapter 11 bankruptcy protection. The developments are in Kern and Riverside Counties. This week, a separate SunCal subsidiary halted development of Marblehead in San Clemente.
Troop and attorneys representing most other large lien holders have asked for the bankruptcy filing in the case to go into Chapter 7, which would liquidate the company entirely. Craig Rankin, an attorney for third lien holders owed $75 million, argued for a temporary halt to keep the bankruptcy in Chapter 11, which would give his clients a better chance of recovering their debts.
A hearing on the case — Bankruptcy Petition #: 8:08-bk-15588-ES — is scheduled for Tuesday.
