Fairfield's bankruptcy documents, filed in Delaware, list assets of $100 million to $500 million and liabilities of more than $1 billion. Apartment developer Fairfield Residential LLC, which has projects in North Texas, has filed for Chapter 11 bankruptcy protection.
The company said it reached an agreement with its major creditors for the “framework of a consensual plan of reorganization.” A new operating company was formed that will allow Fairfield to continue to operate its property and asset management, construction services and general partner functions. The new operating company has the ability to raise capital.
“Through our productive discussions over the past year, we have reached agreements with our lender groups that will allow us to continue to provide property management services, complete our construction projects and preserve value for our creditors,” president and CEO Christopher Hashioka said.
Fairfield specializes in multifamily housing and is based in San Diego, Calif.The filing includes Fairfield and 14 subsidiaries the company controls. Assets not transferred to the operating company will be transferred to a liquidation trust that will “serve to maximize creditor recoveries,” the company said.
The case is In re: Fairfield Residential LLC, U.S. Bankruptcy Court, District of Delaware, No. 09-14378
In other News
Bankruptcy Framework In Place For Dubai World
Dubai World officials are due to meet creditors later this month to hammer out a six-month standstill agreement for its debts.
In the event that a deal with creditors cannot be reached, the new law will allow for a structured wind down of the company and protection for its assets, the advisor said. Earlier, Dubai's government announced that oil-rich neighbor Abu Dhabi has pumped in $10 billion of emergency funding to help meet Dubai World's immediate liabilities to creditors and contractors, including $4.1 billion to pay off an Islamic bond that matures today.
According to the advisor, the new law is specifically to deal with the problems at Dubai World but could also provide a framework for other Dubai government-related companies in financial difficulty.