In the statement, WCI president and CEO David Fry said, "Most significant is the fact we have paid down over $60 million, which is 20% of our senior secured term loan, in the past 40 days. We are executing well on a plan that will generate significant cash flow and provide the company with flexibility to react to opportunities once the Florida real estate market recovers."
Such a statement from a company fresh out of bankruptcy that is no longer publicly traded was unusual. The statement was directed primarily at secured creditors, which now own 95% of the company.
Fry said the home building, amenities and real estate services segments of the company's buisness "are each ahead of plan from both an earnings and cash-flow perspective." He reported that WCI has sold more than 500 new homes since January 1 and that Prudential Florida Real Estate Services, which includes real estate brokerage, mortgage, title, home warranty and insurance, is on track to close 8,700 resale transactions in 2009.
Fry outlined the post-bankruptcy strategy in an lengthy interview with Big Builder's Teresa Burney late last month.