Coastal Communities Inc., which is an Irvine-based homebuilder developer, has opted for bankruptcy. The company was widely known and famous for its Brightwater project in Huntington Beach. On Tuesday, Chapter 11 reorganization was filed by Coastal in the Santa Ana division of the U.S. Bankruptcy Court. Including Hearthside Homes Inc. and Signal Landmark subsidiaries it’s eight more affiliates too, filed for protection from bankruptcy.

The company has listed a petition of assets and liabilities of $100 million and $500 million respectively. The company issued a statement saying that to get an extension on the approaching dates of maturity of paying a debt of $182 million for the Brightwater project, the company has filed for bankruptcy. The Brightwater project was a project of 356-home developments. It was taking place near the Bolsa Chica wetlands. In the 105-acre project, already around 70 homes have been sold and 17 more are in the waiting line.

This move was expected by the company as they had defaulted on a loan payment very recently. This had sent a warning signal to the lenders then only. Orange County and Huntington Beach are its 2 most insecure creditors. California Coastal owes them around $9.7 million and $4.6 million respectively.

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