What do you have on that, the flipper loans?
http://online.wsj.com/article/SB120916479361446151.html
A large California land partnership involving one of the largest U.S. pension funds has received a notice of default on a $1 billion loan after failing to meet certain terms of its lenders.
LandSource Communities Development LLC, a partnership that involves the California Public Employees’ Retirement System, received the default notice Tuesday, amid talks to restructure $1.24 billion of debt. The partnership, which owns 15,000 acres in Southern California, had received an extension to meet its current loan terms, including a required payment, but the deadline expired on April 16. The default notice applies to about $1 billlion of the total debt.
LandSource spokeswoman Tamara Taylor said that the default notice won’t accelerate the company’s debt payments and that negotiations with lenders are continuing.
Hundreds of lenders, including banks and institutional investors, hold the syndicated debt. Barclays Capital arranged the financing in early 2007. At the time, LandSource’s assets were appraised at $2.6 billion.
(okay, speculative lands deals...maybe not flipper loans)