Saturday, February 21, 2009

Emaar-owned company declares bankruptcy

Via nzm we learn that the American-based home builder John Laing Homes, acquired in 2006 by Dubai-based Emaar, has filed for Chapter 11 bankruptcy protection. The report comes from Los Angeles Business.

The National also has a report:
Emaar’s purchase of John Laing in June 2006 was the cornerstone of its effort to expand into the US housing market. But Emaar, the Middle East’s largest developer, made the foray as the US housing market peaked.
Still on the John Laing website is the 2006 press release announcing Emaar's purchase of the home builder:
[CEO of John Laing, Larry Webb said]: "The combination of Emaar and John Laing Homes will provide us with additional financial and professional resources to expand beyond our traditional markets of California and Colorado. It's a strategy that Emaar has used successfully in driving growth in their regional real estate markets throughout the world, and we're looking forward to being a part of Emaar's vision for the future of global real estate development."

Upon closing, John Laing Homes will be operated as a division of Emaar. John Laing Homes' corporate headquarters will remain in Newport Beach, CA, and continue to be managed by Larry Webb, who, along with the senior management team, have agreed to multiyear contracts.

On April 17, 2006, Emaar filed voluntarily with the Committee on Foreign Investment in the United States (CFIUS), which has approved the transaction.
Dubai-based Gulf News last covered John Laing Homes on February 13th. The Gulf News story on the bankruptcy is here.

In the UAE, you can "be prevented from leaving the country or may even be imprisoned until [your] debt is repaid."

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