NEWPORT BEACH — Bolsa Chica developer Koll Real Estate Group filed plans Thursday with the Securities and Exchange Commission to issue new shares of common stock in connection with its previously announced effort to eliminate about $200 million in debt.
Under the debt-for-stock swap, the company would turn over majority ownership to bondholders, who would assume the long-term debt. The transaction, which is subject to the approval of bondholders and the SEC, is expected to be completed in June.
The deal would allow the company to shed a hefty debt load that has been hampering its plans to develop the Bolsa Chica site in Huntington Beach. As part of the swap, Koll would relinquish six seats on a newly created 10-member board to representatives of bondholders.
Koll Real Estate also reported Thursday that it had slowed the flow of red ink last year, losing $28.9 million, or 60 cents a share, compared with $116.9 million, or $2.48 a share, in 1995. The company wrote down the value of its assets in 1995, including Bolsa Chica.