Amid a worsening corporate crisis, California developer Sun Cal's CFO Ed Nolan resigned from his post. A prepared statement released Thursday morning said he was leaving the struggling company "to pursue other interests." Nolan had been with the company for more than five years.
In early November, the company filed for bankruptcy on a number of failing projects. Company officials blamed the collapse of Lehman Brothers in mid-September for its problems; Lehman was SunCal's main source of funding for the projects.
SunCal spokesperson David Soyka told the Los Angeles Times last week, "The bankruptcy of Lehman Brothers forced SunCal's legal action. Lehman is unable to fulfill financing obligations."
Documents filed with the U.S. Bankruptcy Court in the Central District of California on Nov. 6 stated that the company sought bankruptcy for 14 project subsidiaries, affecting communities such as Acton Estates, Bickford Ranch, and Emerald Meadows, and had an additional four pending bankruptcy.