Bankrupt California Coastal to Peddle Their Restructuring Plan

California Coastal Communities, Inc., a residential land development and homebuilding company in Southern California, says that the United States Bankruptcy Court for the Central District of California has scheduled a hearing on February 16, 2011 to consider confirmation of the company’s plan of reorganization with respect to its Chapter 11 bankruptcy cases. The company will now commence solicitation of votes from its creditors in support of the plan.

With the plan supported by over 80% of its senior secured lenders, the Company expects it will obtain Bankruptcy Court approval of the plan at the February 16th hearing and emerge from bankruptcy shortly thereafter; however, this is not a sure thing.

CEO Raymond J. Pacini commented, “With the support of our lenders, we are on track to exit bankruptcy by the end of February. We look forward to the spring selling season and are well-positioned to provide unique coastal homes at our Brightwater project in Huntington Beach.”

The company’s principal subsidiaries are Hearthside Homes which is a homebuilding company, and Signal Landmark which owns 110 acres on the Bolsa Chica mesa where sales commenced in August 2007 at the 356-home Brightwater community. Hearthside Homes has delivered over 2,300 homes to families throughout Southern California since its formation in 1994.