RESTRUCTURING UPDATE
On January 11, 2010, Fairfield Residential LLC and certain of its subsidiaries filed an amended Plan of Reorganization with the Court. The following day, Fairfield announced that, pending Court approval and a subsequent marketing process, Och-Ziff Real Estate and CalSTRS will provide an aggregate $115 million in new money investments to support operations and future real estate acquisitions following the Company’s emergence from Chapter 11 protection.
This follows Fairfield’s announcement on December 13, 2009, that the Company had filed voluntary petitions in the United States Bankruptcy Court for reorganization under Chapter 11 of the United States Bankruptcy Code. Subsequently, the Trustee of the U.S. Bankruptcy Court appointed members to the official committee of unsecured creditors to complete negotiation of Fairfield’s Plan of Reorganization. The Court also granted a variety of First Day Motions that enable Fairfield to continue to conduct its business operations in the ordinary course.
Prior to the filing, Fairfield and its significant lender groups agreed to the framework of a consensual Plan of Reorganization that will enable continuity of Fairfield's property management, asset management, construction services and general partner functions for the benefit of its creditors and other stakeholders. Since that time, the Company has continued to work through the reorganization process expeditiously.
Fairfield expects to emerge from the reorganization process and maximize value for all of stakeholders by creating a stronger go-forward operating platform and continuing to be an active player in the multifamily sector.
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Fairfield is among the largest multifamily real estate operating companies in the U.S. Fairfield is privately held and provides acquisitions, entitlement, development, construction, redevelopment, property and asset management, and disposition services to its clients. Fairfield specializes in mixed-use, transit-oriented attached housing communities and offers a diversified product line including construction of luxury apartment homes, university student housing, tax credit affordable housing properties, and redeveloped apartment homes in urban and suburban infill neighborhoods.