LandSource Communities Emerges from Chapter 11 as Newhall Land Development; FocalPoint advises the Official Committee of the Unsecured Creditors

Los Angeles – LandSource Communities Development LLC (“LandSource”) announced that it has emerged from Chapter 11 reorganization as Newhall Land Development LLC. The company consists primarily of the Newhall Land and Farming Company in Los Angeles County, the Newhall Orchard, Valencia Water Company, and the TPC Valencia Golf Club. The Newhall Land and Farming Company is a land management company based in Valencia, California. The company is responsible for the master community planning of Valencia, as well as the management of farm land elsewhere in the state.

LandSource, previously owned by CALPERS, Lennar and LNR, filed for Chapter 11 on June 8, 2008 having defaulted on approximately $1.0 billion of first lien indebtedness and $250 million of second lien indebtedness. The Official Committee for the Unsecured Creditors (the “Committee”) engaged FocalPoint Partners (“FPP”) as co-financial advisor to represent its interests, analyze various business and strategic alternatives, and assist in negotiating its recovery.

Despite the significant level of secured debt that encumbered almost all of the assets of LandSource other than the Valencia Water Company, FPP, in concert with the work of Pachulski Stang (Committee counsel) and the Committee’s other advisors, was able to negotiate a return to the General Unsecured Creditors of approximately 36% of their estimated claims in cash. This return compared favorably with that of the first and second lien creditors who received a 10% return in equity and a 4% return in cash, respectively.

About FocalPoint
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and special situations. The firm’s primary focus is on middle-market companies.

Please contact Alex Stevenon at (310) 405-7080 with any questions about this transaction.

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