Creditors Seek To Force WL Homes Into Ch. 7

Law360, New York (May 7, 2009, 12:00 AM EDT) -- WL Homes LLC's creditors committee has asked a federal judge to convert the real estate developer's bankruptcy case to Chapter 7, saying its current Chapter 11 proceeding is just a way for the parent company to free itself of liabilities at its creditors' expense.

In a motion filed Thursday in the U.S. Bankruptcy Court for the District of Delaware, the committee said that WL Homes' parent company, Dubai-based Emaar Properties PSJC, planned to provide WL Homes with a $30.8 million debtor-in-possession financing facility for the sole...
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