The Los Angeles Times reported that Southern California-based homebuilder KB Home widened its loss in the first quarter after taking a financial hit on the bankruptcy of Inspirada in Henderson.
The company posted a net loss of $114.5 million, or $1.49 a share, for the three months that ended Feb. 28. That compared with a net loss of $54.7 million, or 71 cents, a year earlier, the Times reported.
The company took a $53.7 million charge and a loss on loan guaranty of $22.8 million related to the bankruptcy of South Edge, of which KB Home is a partial owner. South Edge is the developer of Inspirada.
In December, lenders including JPMorgan Chase Bank filed an involuntary bankruptcy petition against the developers. With past due loans and defaults totaling $328 million, the judge approved that request in February and the developers are appealing.
The Chapter 11 filing in Las Vegas bankruptcy court was made against South Edge, which the bank says is 48-percent owned by homebuilding giant KB Home. Other owners of the company are developer John Ritter's Focus South Group and homebuilders Meritage Homes, Woodside Group, Toll Brothers, Beazer Homes, Kimball Hill Homes and Pardee Homes.
Inspirada, before the recession, was envisioned to be a $1.25 billion project with some 8,500 residences as well as amenities found in master plans like a hotel-casino, shopping, dining, parks, schools and trails.