Lehman Brothers was the top bidder earlier this week in the auction of 5,800 acres of land in Ka’u that went into foreclosure. Lehman Brothers was the top bidder earlier this week in the auction of 5,800 acres of land
Lehman Brothers was the top bidder earlier this week in the auction of 5,800 acres of land in Ka‘u that went into foreclosure.
The investment bank bid about $12.25 million during auction Tuesday in Honolulu, said George Van Buren, the case’s commissioner.
Court documents list WWK Hawaii Holdings as the major owner of the land, split up at three locations defined as Waikapuna, Honuapo and Moaula.
The owner had previously planned to use a $105 million loan with Lehman Brothers to build high-end homes on large lots, but that deal was shelved when the bank went into bankruptcy in 2008, Pacific Business News reported last month.
Lehman Brothers attorney David Paulson couldn’t’ be immediate reached for comment on what the company plans to do with the property.
The land is assessed at $13.59 million.
The remaining mortgage on the properties is $59.7 million.
Competing bidders will have one more chance to come out on top.
George Van Buren, the case’s commissioner, said next a hearing will be held to finalize the bid, at which time other offers can be made.
The hearing must be held at least 18 days after a motion is filed, he said.
A motion will likely be made in the next few weeks, Van Buren said.
