Pinnacle projects in bankruptcy

<p>Santa Rosa's Pinnacle Homes has filed for bankruptcy protection for two limited partnerships that together owe about $4 million to Westamerica Bank for home sites in Sebastopol and near Ukiah.</p><p>The high-end builder last month sought permission to reorganize the partnerships under Chapter 11 of the bankruptcy code.</p><p>Meanwhile, Santa Rosa's Exchange Bank in January notified Pinnacle that it is late on loan payments and owes nearly $2.6 million. The debts involve loans for two properties in Petaluma, as well as a revolving line of credit.</p><p>Pinnacle Vice President Dick Dowd said the 19-year-old company placed two partnerships it manages into bankruptcy last month to “find a fair way to resolve these issues.”</p><p>“We are not out of business and we're seeing if we can't work with the banks to find some reasonable accommodation for them and for us,” Dowd said Monday.</p><p>The downturn in the nation's housing and real estate markets has battered some of Sonoma County's biggest developers and real estate investors. Prominent landowner Clem Carinalli and developer Wendell “Del” Nordby each sought bankruptcy protection.</p><p>Some banks have sued local home builders to take control of housing developments. Among such properties was Christopherson Home's partially completed Linwood Village project in southeast Santa Rosa. It was sold with court approval last summer for $7 million to Lennar Homes, the nation's third-largest builder.</p><p>Dowd said the debts to Westamerica involve 11 home sites in its Litchfield Terrace subdivision in Sebastopol, plus a finished home and nine residential lots in its River Walk project near Ukiah.</p><p>Separate bankruptcy cases have been filed for the builder's Sebastopol and Ukiah partnerships. In each case, Pinnacle estimate partnership assets at less than $50,000.</p><p>Westamerica's attorneys have filed motions designed to hasten the day when the bank might be allowed to foreclose on the properties.</p>