Irvine-based homebuilder John Laing Homes filed for Chapter 11 bankruptcy Thursday, citing turmoil in the housing market.
The filing, made in Delaware’s bankruptcy court, lists assets of more than $1 billion and debt of $500 million to $1 billion.
The company said it plans to get out of markets other than California. It will focus on building in select communities in its core Southern California market and its luxury division.
It’s a quick fall for John Laing, which was bought in 2006 by Dubai’s Emaar Properties PJSC for $1.1 billion, near the peak of the housing market.
Emaar invested more than $613 million in John Laing since the acquisition, according to court papers.
Speculation about John Laing’s future had been rampant the past few weeks. The filing comes a few weeks after John Laing closed sales offices across California, Colorado, Arizona and Texas, and slashed its total staff to about 90 employees.
In 2007, John Laing posted revenue of $948 million on the sale of 1,371 homes. Revenue fell to $287 million through last November, on the sale of 560 homes, according to court filings.
Court papers list Bradley Sharp, from Chicago-based consultancy Development Specialist Inc., as the company’s chief restructuring officer.
