Baldwin Wins 45-Day Delay for Recovery Plan

The Baldwin Co. has obtained a 45-day delay in submitting its plan to repay more than $225 million in debt, company President Alfred Baldwin said Monday.

He did not explain why the company sought the extension. The plan was due Feb. 15. Baldwin Co. creditors reportedly are meeting with the home builder’s financial advisors to stake their claims.

The recovery plan, now scheduled to be submitted in federal Bankruptcy Court on March 30, would specify how much of its debt Baldwin Co. would pay back and how long repayment would take. Once filed, the plan can be challenged by creditors.

Baldwin Co.’s largest debt is to a group of investment firms that bought $155 million worth of junk bonds from the company in 1993. The three largest bondholders, along with high-risk lender Foothill Capital Corp., are providing Baldwin Co.’s operating funds now. In exchange, they have written a loan agreement that enables them to take control of the company if owners Al and James Baldwin miss any loan payments.

The Newport Beach home builder filed a Chapter 11 bankruptcy reorganization petition last July. Its longtime lender, General Electric Capital Corp., stopped funding the company in November, and Baldwin flirted with collapse for months while negotiating a rescue.