Creditors of Focus Property Group’s defunct 2,000-acre, 13,500-home Inspirada master-planned community at St. Rose Parkway and Executive Airport Road in Henderson recently agreed to a reorganization plan that gives lenders like JP Morgan Chase a chance to recoup about $335 million. After a year of negotiations, creditors and the court trustee have agreed to a reorganization plan. Eight homebuilders, including Toll Brothers, KB Home, Beazer Homes, and Pardee Homes, among others, purchased the development property during a June 2004 federal auction for $557 million, or $278,500-per-acre. When housing bubble burst, only a small portion had been developed. The project defaulted on its loans in 2008, and creditors forced Inspirada into involuntary chapter 11 bankruptcy two years later. The court appointed a trustee, Cynthia Nelson, in February 2011. Toll, KB, Beazer and Pardee agreed to settle for about $335 million. Two of the companies, Woodside Homes and Kimball Hill Homes, declared bankruptcy themselves and are no longer part of the pact. Focus worked out an earlier settlement.Inspirada Lenders Recoup $335 Million
Creditors of Focus Property Group’s defunct 2,000-acre, 13,500-home Inspirada master-planned community at St. Rose Parkway and Executive Airport Road in Henderson recently agreed to a reorganization plan that gives lenders like JP Morgan Chase a chance to recoup about $335 million. After a year of negotiations, creditors and the court trustee have agreed to a reorganization plan. Eight homebuilders, including Toll Brothers, KB Home, Beazer Homes, and Pardee Homes, among others, purchased the development property during a June 2004 federal auction for $557 million, or $278,500-per-acre. When housing bubble burst, only a small portion had been developed. The project defaulted on its loans in 2008, and creditors forced Inspirada into involuntary chapter 11 bankruptcy two years later. The court appointed a trustee, Cynthia Nelson, in February 2011. Toll, KB, Beazer and Pardee agreed to settle for about $335 million. Two of the companies, Woodside Homes and Kimball Hill Homes, declared bankruptcy themselves and are no longer part of the pact. Focus worked out an earlier settlement.
