New ETF Book by Larry Connors - Click here to read more
If approved, the move would give SunCal Oak Knoll LLC access to $75 million for "critical expenses," according to a prepared statement issued by the company.
Company representatives were not available to comment.
Demolition was under way on the 167-acre project when the SunCal Companies subsidiary suspended the work after its main financial backer, Lehman Bros., collapsed in September.
Up to $75 million could be available through an "alternate funding source" to cover critical expenses at projects such as Oak Knoll, the statement said. "However, that funding commitment is conditioned upon a court-approved "... lien in the Chapter 11 case."
The company filed the bankruptcy application Wednesday in a Santa Ana court. The declaration would apply specifically to the Oak Knoll partnership and not SunCal Companies itself.
So far, SunCal has spent tens of millions of dollars on the Oak Knoll project, with demolition permits for more than 80 structures at the former Oak Knoll Naval Medical Center.
Councilmember Larry Reid, one of the biggest boosters of the project that is within his Elmhurst-East Oakland district, said the developer had been trying
to get the project back on track. Reid said Wednesday that he was unaware SunCal had announced the partnership was filing for bankruptcy.
The property, above Interstate 580 between Mountain Boulevard and Keller Avenue, was decommissioned by the Navy in 1996. SunCal paid $100.5 million for 167 acres at a November 2005 auction.
The company had intended to submit its development plans to the city for approval this fall, but that is now on indefinite hold. It wasn't clear how the money would be used, but the company said vandals and copper thieves have been stripping materials form the site.
The vacant buildings that are being used as shelter also pose a fire hazard, particularly because of the wildfire-prone Oakland hills, according to the company.
The completed project was estimated to generate about $925 million in 45 years for the Central City East Redevelopment district, more than a third of which would be spent to build affordable housing in East Oakland's flatlands neighborhoods.
The company also is the developer of the Alameda Point project and the Dublin Crossing plan in Dublin. The company said in the past that the Lehman meltdown did not affect those projects because they have separate funding sources.
However, the Orange County Register newspaper reported in March that several lawsuits had been filed against SunCal, seeking millions of dollars owed suppliers, lenders and contractors. The paper also reported that work had stalled or slowed down on several of the company's developments, including Alameda Point.
Reach Angela Woodall at 510-208-6413 or awoodall@bayareanewsgroup.com.
To see more of The Oakland Tribune or to subscribe to the newspaper, go to http://www.insidebayarea.com/oaklandtribune/. Copyright (c) 2008, The Oakland Tribune, Calif. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
