Landsource Communities Development, LLC, parent company of Newhall Land & Farming, filed for Chapter 11 bankruptcy protection. In February, 2007, the California Public Employees’ Retirement System made a major investment in Landsource, to the tune of $970 million. According to the Wall Street Journal, the venture’s assets were appraised at about $2.6 billion at the time. Now, the value has shrunk to $1.8 billion and could go even lower. There are 21 debtors named in the filing, including Newhall Land, the Tournament Players Club of Valencia, Valencia Realty Company and Stevenson Ranch Venture LLC. Of the top 30 creditors holding the largest unsecured claims against Landsource, 15 are located in the areas of the San Fernando, Santa Clarita, Simi and Antelope valleys. More than $14 million are owed to these businesses alone.
Newhall Land & Farming Parent Files Chapter 11