Bankruptcy Plan Points to Sale of J.M. Peters Stock

A bankruptcy reorganization plan filed Wednesday by Southmark Corp. appears to give the Dallas real estate and financial services concern new impetus to sell its majority stake in J.M. Peters Co., the Newport Beach residential builder.

The plan does not specifically address the disposition of the 87% share of J.M. Peters owned by Southmark’s thrift subsidiary, San Jacinto Savings Assn.

But it does call for Southmark to keep the thrift while selling most of its other assets to pay off creditors and raise up to $100 million in cash to pump up the ailing thrift’s capital.

San Jacinto has about $4 billion in assets and accounts for about 70% of Southmark’s total assets. One of San Jacinto’s prime assets is its 12 million shares of J.M. Peters stock, which has a current market value of about $120 million.

Officials at San Jacinto and Southmark could not be reached for comment. And Brian Theriot, investor relations director for J.M. Peters, said the company would have no comment. An unusual agreement reached between Southmark and the federal Office of Thrift Supervision would let Southmark keep San Jacinto Savings after boosting its capital by $210 million, including $100 million in cash and property.

Times wire services contributed to this article.