East West Resort Development files for Ch 11 bankruptcy
East West Resort Development V LP LLLP, a U.S. luxury residential community developer, filed for bankruptcy protection early on Tuesday, saying it was unable to secure additional capital from its current lenders to fund development and other expenses.In court filings, the company said it was formed to develop residential and commercial real estate projects on and around the North-at-Tahoe Resort, a residential development and year-round resort community located in North Lake Tahoe, California.East West Resort Development, whose affiliate owns the five-star Ritz-Carlton Highlands at Lake Tahoe, said its properties had lost significant value over the past year and in some cases, assets were being valued below their loan balances.The company said that as on Dec. 31, 2009, it had $256 million in assets. Excluding $189.4 million in contingent guarantee liabilities and bond obligations, it had $61 million in debt.It also sought court approval for a $10 million debtor-in-possession DIP financing to continue operations while in Chapter 11 bankruptcy.East West Resort Development also owns Old Greenwood, home to the 18-hole Jack Nicklaus Signature Golf Course in Truckee, California.
via UPDATE 1-East West Resort Development files for Ch 11 bankruptcy | Reuters.