IRVINE, CA-The US Bankrtupcy Court for the Central District of California has approved a plan that will provide $184 million in refinancing for developer California Coastal Communities to emerge from Chapter 11 bankruptcy. The $184 million will refinance the project debt for the Irvine-based company's Brightwater development.

California Coastal said previously that it had obtained a commitment from an investor for the refinancing, whicgh remains subject to the successful negotiation and execution of definitive loan documents and the court's approval of the company's plan of reorganization in order for it to exit bankruptcy. California Coastal Communities, as GlobeSt.com reported earlier this week, is the parent of home builder Hearthside Homes and Signal Landmark, which owns 110 acres on the Bolsa Chica Mesa. The company says that the new financing will replace its existing secured debt.

California Coastal CEO Raymond J. Pacini commented in that report that the new financing, if approved by the court, “will provide a more certain exit from bankruptcy without the risk of litigation.” Pacini said further that one result of the financing will be that that California Coastal will be able to “sell homes at a pace that allows the company to benefit from the inevitable recovery in coastal home prices.