Baldwin Co. Gets Credit Line Increase
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SANTA BARBARA — Financially ailing Baldwin Co. said it received bankruptcy court approval late Thursday to increase its borrowing from its lender, General Electric Capital Corp., by $7 million over the next two weeks.
A hearing has been scheduled for Nov. 17 to consider a plan to increase GE’s credit line to Baldwin by another $23 million, giving the Newport Beach home builder a total of $30 million in new funds. Baldwin, which filed for Chapter 11 bankruptcy on July 18, has almost exhausted its present $70 million credit line with GE. The interim loan will enable the company to continue paying subcontractors and suppliers working on the approximately 400 homes Baldwin has under construction in Orange, San Diego, Los Angeles and Ventura counties.
Thursday’s hearing was the fourth in a week on Baldwin’s loan agreement with GE. Both the court and the Baldwin Co. creditors committee have objected to GE’s insistence on a guarantee that it can declare Baldwin in default and foreclose on the company’s assets without interference from the court or other creditors.
The loan agreement has been extended for several months, recently on an almost day-to-day basis, pending resolution of the dispute.
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