William Lyon Homes, which develops new home communities in California, Arizona and Nevada, announced that its pre-packaged plan of reorganization has been confirmed by the U.S. Bankruptcy Court just 53 days after its plan and related petitions were filed. The company expects to emerge by the end of February.

As previously announced, upon emergence, approximately $180 million in principal amount of debt will be eliminated as part of the recapitalization plan, resulting in a 37% reduction in overall debt. Annual cash interest expense will also be reduced by nearly $25 million or approximately 45% compared with current levels.

“The successful and rapid recapitalization of the company is due in large part to the continued loyalty of our customers and suppliers, the professionalism and dedication of our employees and the commitment and support of our creditor groups,” said CEO General William Lyon.

The plan of reorganization, which is supported by all of the company’s stakeholder groups, significantly strengthens the company’s liquidity by providing $85 million in new capital investment upon emergence.

“Since we began this process just a few months ago, William Lyon Homes has successfully recapitalized the company’s financial position, strengthened its business through the acquisition of highly desirable properties in northern California and south Orange County, and built a foundation from which we can grow. In a matter of days, William Lyon Homes will emerge from this process a more competitive company with a strong balance sheet,” COO 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 stakeholders and are confident that William Lyon Homes will continue to develop premier communities for many years to come.”

Irell & Manella and Pachulski Stang Ziehl and Jones served as legal counsel and Alvarez & Marsal served as financial advisor to the company.

Previously on abfjournal.com:

2011 Recap: Healthcare, Medical/Telecom Bankruptcies Dominate, Friday, December 30, 2011