Childers Construction Files for Bankruptcy Protection
Robert L. Childers Co., one of San Diego County’s largest home builders, filed for protection under Chapter 11 of the federal Bankruptcy Code on Tuesday.
In an unusual arrangement, Childers settled out of court the claim of its largest secured creditor, Great American Bank, which Childers owed $51 million. Great American Bank provided Childers the financing with which to develop its San Diego County home sites as well as a business park in Sorrento Valley called Childers Corporate Park.
The deal, which is subject to approval by Great American’s board of directors, calls for Childers to hand over five of its six San Diego projects to Great American, including hundreds of acres and 70 completed houses.
In a filing with U.S. Bankruptcy Judge James W. Meyers, Childers listed liabilities of $52.7 million--all but $1.5 million of which is owed to Great American--and unspecified assets, Childers’ attorney Colin Wied said Tuesday.
Wied said the credit crunch, the flat housing market and development delays were responsible for Childers’ financial problems.The developer’s 200-acre site in Otay Mesa--which Childers will retain under terms of the deal with Great American--has been held up by the proposal to build a binational airport in the area.
The projects that Childers is turning over to Great American include the Hacienda Heights development in Vista, Spyglass in Escondido, Rancho Viejo in Fallbrook, The Colonies in Oceanside and Childers Corporate Park in San Diego.
Childers began developing houses in Imperial Valley in 1963 and moved its organization to San Diego in 1982.
