Daily News: February 29, 2012

William Lyon Homes Emerges From Chapter 11

William Lyon Homes, which develops new home communities in California, Arizona and Nevada, announced that it emerged from its voluntary pre-packaged Chapter 11 reorganization with the effectiveness of its plan of reorganization having occurred on February 25. The U.S. Bankruptcy Court confirmed the company’s pre-packaged plan of reorganization on February 10, just 53 days after its plan and related petitions were filed.

“The successful completion of the company’s recapitalization is a major accomplishment which will help William Lyon Homes to remain a leader in the homebuilding industry for years to come,” said CEO General William Lyon.

The company has now received a capital infusion of $85 million and reduced both the principal amount of its debt and its cash pay interest expense, significantly strengthening its balance sheet. Principal debt was reduced by approximately $180 million, resulting in a 37% reduction in overall debt. Annual cash interest was reduced by approximately 45% or nearly $25 million.

“Now that this process is complete we can refocus on executing on our business objectives. The company was able to continue making acquisitions throughout the recapitalization process, and with our new capital structure, we look forward to bringing these and other highly desirable projects to market. The support of our many stakeholders throughout this process has been a true testament to the reputation of William Lyon Homes and the legacy of my father,” chief operating officer and president William H. Lyon stated.

“Today marks the beginning of the next phase in William Lyon Homes’ long history,” said EVP Matthew R. Zaist. “We are extremely appreciative of the support of all of our customers, trade and business partners, and employees. William Lyon Homes will continue to be the premier developer of residential communities in the Southwest for many years to come.”

Previously on abfjournal.com:

William Lyon Homes Receives Confirmation of Plan of Reorganization, Monday, February 13, 2012