Fairfield Residential LLC, a multifamily real estate operating company, announced Sunday that it and certain of its subsidiaries have filed voluntary petitions in the U.S. Bankruptcy Court for reorganization under Chapter 11 of the Bankruptcy Code.
As part of the filing, Fairfield and its significant lender groups have 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, the company says.
The reorganization plan maintains Fairfield's existing infrastructure in a new operating company, which will include key personnel, and which will allow the company to facilitate debt and equity solutions, as well as manage its properties. Certain Fairfield assets not assigned to the new operating company will be assigned to a liquidating trust that will serve to maximize creditor recoveries.
Under the plan, the new operating company may obtain new capital, and Fairfield says it has secured interest from a number of parties to provide this financing.
SOURCE: Fairfield Residential LLC