WORLD PROPERTY CHANNEL ®

(BONITA SPRINGS, FL) -- It isn't every day that a corporation gets $2 billion of debt wiped clean from its books. But that's the enviable position today of WCI Communities Inc., a Bonita Springs, FL-based luxury homes builder.

The developer expects to emerge from bankruptcy protection Aug. 31 after being shielded from creditors for over a year.  A majority of the creditors have accepted WCI's reorganization plan which was also approved by the U.S. Delaware Bankruptcy Court.

Under the plan, the Company's senior secured lenders will receive $450 million of new debt and an initial 95% equity stake in WCI.

Unsecured creditors will receive interests in a litigation trust and an initial 5% equity stake in the company that could increase to as much as 35% depending on the results of future operations.

All existing shares in the company are being cancelled and will receive no recovery.

David L. Fry

At the same time, the company said David L. Fry would stay on as president and chief executive officer of the reorganized company.  Fry, who guided the company through the Chapter 11 process, joined WCI in 1995 and served as chief operating officer prior to being named interim president and CEO at the time of WCI's bankruptcy filing in August 2008.

Of WCI's emergence from Chapter 11, Fry says, "Given the fact that we are experiencing one of the most challenging real estate markets and economic environments in recent history, this is a truly remarkable achievement."

He adds,  "WCI, along with its major constituent groups, have worked together to fashion a plan that allows us to emerge as a de-leveraged lifestyle community developer and land holding company and ensures that recoveries are allocated fairly among the company's stakeholders.

"The flexibility granted under the plan allows WCI to navigate its business during these unprecedented times and beyond. I am confident that the company and its stakeholders will succeed together. "

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