J.M. Peters Sale Is Best Possible Option
As a builder and competitor of the J.M. Peters Co., I must take exception to the editorial questioning the pending sale of the company to another local builder by the Resolution Trust Corp. (“J.M. Peters Deal a Frustrating Prospect,” July 5).
The proposed sale is not only the best possible deal for the U.S. taxpayers, but it also benefits the Orange County economy and the home-buying public.
The Times implies that the new buyer, Capital Pacific Homes, is buying the Peters portfolio of land too cheap, at the expense of the U.S. taxpayer.
The fact is that the RTC’s 85% interest in the J.M. Peters Co. has been aggressively marketed for nearly a year. Every credible builder and investment group in the United States had an opportunity to bid on the company, but few were even interested. The RTC selected Capital Pacific because they bid more money on better terms than any other buyer.
The RTC’s only alternative is to liquidate the company, fire all of its employees and dump its substantial land holdings on the market all at one time. This would cause already depressed residential land values to drop still further. The RTC will get less for the J.M. Peters Co. and less for all of the rest of the land they are trying to sell in Southern California. They would also be faced with lawsuits from the minority stockholders and disenfranchised homeowners on warranty claims.
Selling the J.M. Peters Co. intact not only maximizes the recovery for the taxpayer but also saves jobs in Orange County.
An organization that has earned a reputation as one of the highest-quality home builders in California will remain intact. The land holdings will be translated into more jobs and competitively priced new housing, instead of windfall profits for land speculators.
Moreover, the nearly 6,000 families that have bought J.M. Peters homes will continue to have a reputable company to look for customer service and warranty claims.
JEFFREY D. PARKER, Executive vice president, Interamerican Builders Corp.
