Wilmington Trust Fights Builder's Ch. 11 Agreement

Law360, New York (June 18, 2010, 5:39 PM EDT) -- Wilmington Trust FSB on Friday opposed an emergency motion by California Coastal Communities Inc. seeking to authorize the bankrupt developer to enter into an exit financing commitment letter, arguing that the letter should first undergo critical modifications.

The agreement should not allow proposed new lender Luxor Capital Group LP to walk away from its commitment if California Coastal is alleged to have acted in bad faith, Wilmington Trust said in a response filed with the U.S. Bankruptcy Court for the Central District of California.

California Coastal...
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