LandSource, the now-bankrupt land developer with large holdings in and around the Santa Clarita Valley, has tapped Larry Webb (former CEO of John Laing Homes) and Timothy Hogan (former CEO of Warmington Homes) to help restructure it out of bankruptcy. From a BigBuilderOnline.com story:
The former CEOs of John Laing Homes and Warmington Homes are on deck to manage the assets of LandSource Communities through bankruptcy reorganization.
The California-based land developer has asked a bankruptcy court judge to appoint Timothy P. Hogan, formerly of Warmington, and H. Lawrence (Larry) Webb, once with John Laing, as co-chief restructuring officers...
The judge will hear the request on Aug. 19. His approval would make formal what has actually already started. HoganWebb LLC has been working since July 1, defining what services they would provide as restructuring officers.
Under the proposed agreement, they would perform a financial review, help develop restructuring plans and other alternatives to maximize the value of the business, work as the main contact for financial and operational issues, as well as a variety of other tasks. For that first phase, the pair will be paid $120,000 a month.
If the company fails to develop a reorganization plan by certain deadlines, the contract will kick into phase two and Webb and Hogan will become the sole members of the executive committee. For that they would be paid $170,000 a month.
HoganWebb would be paid a $1 million bonus if the bankruptcy court confirms a reorganization plan on or before June 7, 2009.
Hogan and Webb were selected after an extensive search because they are considered neutral, with no significant ties to either the debtor or creditors.
Nice work if you can get it!
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