Baldwin Co. Trustee Planning Reorganization

The trustee for bankrupt Newport Beach builder Baldwin Co. has raised nearly $12.5 million through selling 55 homes during the summer and will file a plan soon to reorganize the company. The trustee, David Gould, said in a report filed with the U.S. Bankruptcy Court in Santa Barbara that he’s working on a business plan as a first step in determining how to reorganize the operations.

Brothers James and Alfred Baldwin put their company, once one of the state’s largest home builders, in Chapter 11 bankruptcy reorganization last year. Though they own the company, they have been ousted from control of the business and their stock is considered worthless.

Even so, the brothers continue to control thousands of acres of prime land, much of it in south San Diego County, through Village Development and other companies that are not in bankruptcy. Gould, however, has first crack at buying any Village properties.

Since June, the trustee has sold homes in nine Baldwin developments. After payments on loans, mechanics’ liens and other costs on the properties, the company was left with $8.4 million for other creditors.

Gould also said in his court document that he has filed documents opposing claims by the cities of Anaheim and San Marcos and by Los Angeles County that Mello-Roos taxes, which are owed for development costs, should receive a higher priority over other debts. However, he said, he continues to negotiate with the governments to settle that issue.