January Ruling Expected on Newhall Buyback Plan

Newhall Land & Farming Co. said a Los Angeles Superior Court judge will rule next month on how soon the company can proceed with its plan to buy back at least $40 million of its partnership units.

Newhall, a real estate and agriculture concern based in Valencia, announced the plan Sept. 30 to help settle a class-action lawsuit brought by dissident investors. Newhall is organized as a master limited partnership whose units, which are similar to shares of stock, trade on the New York Stock Exchange.

Last month, Superior Court Judge Barnet M. Cooperman approved Newhall’s plan, which also calls for Newhall to pay a special distribution of 30 cents per unit to all unit-holders of record as of Sept. 28.

However, under existing California law, Newhall is not allowed to proceed with the plan until the period for appeals is over, which is Jan. 27. Newhall has sought the ruling by Cooperman to begin the plan at its discretion, even if an appeal is filed. So far, no appeal has been made.