WCI Communities Files Plan for Reorganization

Developer of Hammock Dunes tower condominiums looking to exit Chapter 11 in 4th quarter of ’09.

Palm Coast, Florida – June 8, 2009 – WCI Communities, the developer of tower condominiums at Hammock Dunes, the private Oceanside golfing community near Palm Coast, Florida, filed today a plan to emerge from Chapter 11 bankruptcy for itself and approximately 130 of its wholly owned subsidiaries.
“The filing of our Plan is a major milestone in WCI’s restructuring events and our goal of emerging from chapter 11 in the third quarter of 2009,” said David L. Fry, Interim President and Chief Executive Officer. “Under the Plan, WCI will emerge as a deleveraged lifestyle community developer and land holding company with the flexibility to navigate its business during these unprecedented times and beyond. Consistent with the decision made earlier in the year, the Company intends to continue to suspend all Florida homebuilding new construction activities indefinitely, pending market recovery. However, the Company will continue to complete homes under construction and will continue the ongoing maintenance of our communities and amenities operations.”
Under the plan, senior secured lenders will get new first lien debt of $450 million which includes an initial 95% stake in the reorganized company. The plan has not been approved yet by lenders. The court will consider the filing on July 17, 2009.
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