by Calculated Risk on 4/29/2008 03:57:00 PM

From S&P Leveraged Commentary & Data: LandSource bankruptcy filing expected in May as cash runs out (hat tip marmadogg)

The S&P unit believes LandSource will file bankruptcy within the next two to three weeks.

The WSJ reported last week on the default notice From the WSJ: Calpers-Linked Land Partnership Gets Default Notice

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 ... owns 15,000 acres in Southern California ...

LandSource's trouble followed mounting stress at two large joint ventures in Las Vegas ... One partner in these ventures said Friday that it is unlikely that it will meet its obligations to the deals. The partner, home builder Kimball Hill Homes, announced Wednesday that it had filed for Chapter 11 bankruptcy protection.

Click on photo for larger image.

Photo taken Jan 01, 2008 at the Sacramento Airport by Itamar

The ripple effects continue. Kimball Hill Homes files bankruptcy, and now S&P is expecting LandSource to file bankruptcy too. And perhaps unrelated, the CEO of Calpers is retiring and the Chief Investment Officer is leaving in June.

I'd expect further ripple effects too.