Five months out of bankruptcy, WCI Communities continues to reduce its debt level after emerging, by selling off assets it deigns "non-core." The company announced Tuesday it had sold off yet another asset outside its new Florida-centric comfort zone toward that end.
Toll Brothers bought 102 home sites in WCI's Four Corners community in East Fishkill, N.Y., north of New York City, for $8.9 million, WCI announced, adding that it will be finishing the 23 homes it has under way in the project by the end of the year.
The company, once publicly held, came out of bankruptcy Aug. 31 as a private company, with 95% of the company owned by its secured creditors. The bankruptcy allowed it to shed roughly $2 billion in debt and its stockholders. However, it still owed $450 million in the form of a loan from its creditors.
Its business plan was to sell off its existing inventory as well as non-core undeveloped assets to pay off the debt. WCI reported Tuesday that it made another $70 million payment on its senior loan debt last week, reducing that loan balance to $144.5 million.
"We have paid down over $150 million during the last five months," said David L. Fry, president and CEO of WCI, in the sale announcement.
WCI also released its sales numbers for 2009. It ended the year with 741 net sales and closed out 16 towers and 10 communities. It also sold five non-core assets for $108 million during the year.
"We continue to take important steps every day in executing on our plan to pay down debt and operate as a profitable, more efficient Florida-focused home builder and developer," Fry said in a company release about the sale.