Lyon Homes Gets Nod On Ch. 11 Plan To Cut Debt By 36%

Law360, Wilmington (February 10, 2012, 9:14 PM EST) -- William Lyon Homes won court approval Friday to proceed with a reorganization plan that will slash the homebuilder's debt load by 36 percent and infuse the company with $85 million in new equity capital.

U.S. Bankruptcy Judge Christopher S. Sontchi signed off on the prepackaged plan after a court hearing where the proposal went unopposed.

The debtors added minor language changes in the confirmation order to resolve objections from the Internal Revenue Service, the Los Angeles county tax collector and Arch Insurance Co., according to Laura...
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