Coming out of bankruptcy court, WCI’s plan for restructuring and settling debt has been approved.
A bankruptcy judge on Wednesday approved a plan of reorganization for luxury home builder WCI Communities Inc (WCIMQ.PK), according to court documents, helping clear the way for the company to emerge from Chapter 11 bankruptcy protection.
The relevancy of this to homeowners in the Gulf Coast is plain:
Last month, a bankruptcy judge approved revisions to the original plan to include a trust account for claims against insurers or suppliers regarding defective Chinese drywall.
In January, WCI said in an SEC filing that it was setting aside $11 million for homes that needed air conditioning coil replacement, “which may or may not be related to the Chinese drywall.”
This means, should that amount not be satisfactory, the company may still be in good standing to help further, which is a positive.