Creditors Object To WL Homes Insider DIP Loan

Law360, New York (March 6, 2009, 12:00 AM EST) -- The creditors committee of bankrupt real estate developer WL Homes LLC, which operates as John Laing Homes, has objected to the debtors' request for post-petition financing, questioning the motives behind the proposed insider debtor-in-possession loan.

The committee balked at the debtors' request for a $30.8 million DIP facility provided by Emaar America Corp., an indirect subsidiary of WL Homes' parent company, Dubai-based Emaar Properties PSJC, which bought WL Homes for more than $1 billion in 2006.

“The relief sought by the motion is so radical and...
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