HOUSING INDUSTRY : Peters Loses $2.3 Million for Quarter

Troubled luxury home builder J. M. Peters Co., which is soon to be sold by the federal government, said Wednesday that it lost $2.3 million in the first quarter of its fiscal 1993, ended May 31.

The Newport Beach company’s loss was 32.5% smaller than its loss in the same period a year before, when it had $3.4 million in red ink. The fiscal 1993 losses were equal to 16 cents per share, compared to 24 cents per share last year.

The company had revenues of $16.7 million, down dramatically from $72.8 million in last year’s first quarter. Sales of the company’s homes fell 74.8% to $15.4 million. Closings on land and lot sales plummeted to $730,000 from $11.1 million.

Peters Co. reported a $57.8-million loss on revenues of $184.9 million in its most recent fiscal year ended Feb. 29.

Earlier this month, the federal Resolution Trust Corp. signed a letter of intent to sell a controlling interest in the company to Capital Pacific Homes, another Newport Beach-based home builder. The deal calls for Capital Pacific to buy 85.8% of Peters Co. stock and $144.8 million of its debt for $47.2 million in cash.

The RTC got involved in the transaction after it seized San Jacinto Savings, a failed thrift in Houston that owns the controlling shares of Peters Co. Peters Co. owes the thrift $126.5 million in principal and $18.3 million in interest.

The sale could eventually cost taxpayers nearly $100 million because much of the Peters Co. debt would be forgiven. Therefore, Capital Pacific would buy Southern California residential lots at large discounts, instead of the RTC selling the land at full market value.