ORANGE COUNTY

Newport Builder Has Bankruptcy Plan: Bankrupt home-builder Bramalea of California Ltd. has filed a reorganization plan in Santa Ana that would allow the firm to come out of bankruptcy with a new owner. Under the plan, Lennar Corp. of Miami would pay at least $6.5 million to buy Bramalea, in what is Lennar’s second major purchase in Orange County. One of the nation’s largest home builders, Lennar recently bought more than 2,000 acres in Coto de Caza, a large master-planned community in South County. Lennar’s investment in Newport Beach-based Bramalea includes $1.6 million to purchase many of the unsecured claims, including those of subcontractors. In addition, Lennar has purchased the claims of Bramalea’s major lenders, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Toronto Dominion Bank and National Westminster Bank, for an amount which was not disclosed. Under the plan, Lennar would also make a $4.9 million cash infusion to the company. A hearing about the plan will be held in U.S. Bankruptcy Court in Santa Ana on April 25. “We’re hopeful the plan will be approved. We think it’s a good idea,” said Jeffrey Roos, senior vice president at the company. Lennar officials could not be reached for comment.