NorCal housing development files bankruptcy

November 9, 2008 2:19:51 PM PST
A long-stalled Northern California housing development involving the Wall Street investment bank Lehman Brothers has ended up in bankruptcy court.

SunCal Bickford Ranch LLC filed for Chapter 11 protection Friday in U.S. Bankruptcy Court in Santa Ana. Documents show it owes about $3.4 million to its 20 largest unsecured creditors.

The 1,942-acre development, called Bickford Ranch, is in the Sierra Nevada foothills northeast of Sacramento. It was being built by a partnership formed by Lehman Brothers and SunCal Companies, an Irvine developer.

Funding for the project dried up after Lehman Brothers filed for bankruptcy in September.

The project was stalled for years by environmental lawsuits. Some preparatory work has been done but no homes have been built.


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