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Financial problems strike Newhall Land's owner

• LandSource trying to restructure debt.

Posted: April 23, 2008 2:21 a.m.
Updated: June 24, 2008 5:02 a.m.
 
LandSource Communities Development LLC, the parent company of The Newhall Land and Farming Co., is in negotiations to restructure its debt, according to a Newhall Land spokeswoman.

Newhall Land, developers of the Valencia and Newhall Ranch communities, is owned by LandSource, which is comprised of Lennar Corp., LNR Property Corp. and the California Public Employees' Retirement System.

"LandSource is currently outside the forbearance agreement of its debt facility after the current forbearance agreement expired April 16," said Marlee Lauffer, spokeswoman for Newhall Land.

"The company has been in negotiations to restructure its debt in order to better align its loans and debt covenants with the realities of today's housing market, but has been unable to reach consensual agreement on terms within the given time frame."

Last week, The Wall Street Journal reported that the negotiations involved an estimated restructuring of $1.24 billion in loans.

In the meantime, Lauffer said LandSource is continuing its discussions with lenders while maintaining its companies.

"LandSource's assets enjoy very substantial long term value," Lauffer said in a statement. "Stable, long term management remains in place and the company's goals and vision for the future of the company's largest asset, Newhall Land, remains the same."

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