Dispute Leaves Baldwin Co. Without Credit Line

Financially ailing Baldwin Co. was left in limbo Friday as its lender and creditors were unable to reach an agreement to allow the Newport Beach home builder to receive critical operating funds.

Baldwin Co., one of the largest home builders in Southern California, has been operating on a month-to-month line of credit since filing for Chapter 11 bankruptcy reorganization in July.

The temporary agreement lapsed at 5 p.m. Thursday because of an ongoing dispute between the lender, General Electric Credit Corp., and a committee of creditors.

Bankruptcy Judge Robin Riblett then gave the parties another day to break the stalemate, but the creditors on Friday asked for more time, saying that committee members had been unable to meet. The judge agreed to conduct a hearing by telephone at 10 a.m. Monday from New Orleans, where she is attending a conference.

Both the bankruptcy judge and the creditors committee are objecting to General Electric Credit’s insistence that it be allowed to foreclose on Baldwin assets without being blocked by other creditors or by the court.

Baldwin has a payroll due Tuesday. The company, which has six active planned communities under development in Southern California, has about $6 million available from its $70 million credit line. It is unable to borrow any of that money, however, until there is a court ruling on the dispute.