Sierra Pacific Prospects: Not Looking Good
We posted some Q408 sale prices for lots at which bankrupt Arizona home builder, Sierra Pacific, contracted to sell (see Sierra Pacific Homes Prices). However, things have not been going well. In a recent court filing by FDIC (as received for First National Bank of Arizona), the regulator stated that out of 12 lot sales approved by the court since Sierra Pacific’s bankruptcy, the home builder appeared to have closed only one.
In fact, this matter came up when Sierra Pacific requested to extend the deadline for filing its Disclosure Statement and Reorganization Plan. FDIC opposed this request with pretty strong words:
“[Sierra Pacific] has done nothing since to move this case forward. The bottom had dropped out of the residential real estate market before the bankruptcy filing and shows no signs of recovery. Either Sierra Pacific’s principals are willing and able to recapitalize Sierra Pacific or they are not… Over the last six months the assets securing the debt have continued to depreciate. That trend appears likely to continue. Either Sierra Pacific presents a viable plan of reorganization or it is time to liquidate.”
Crash Predictor indicates the following:
