Judge OKs Baldwin Loan Plan, Hiring of Executive

NEWPORT BEACH — The bankruptcy trustee for Baldwin Co. won court approval Thursday to borrow up to $10 million from a unit of Merrill Lynch & Co. Inc. to pay the Newport Beach home builder’s payroll and other operating expenses and to restart construction at stalled projects throughout Southern California.

U.S. Bankruptcy Judge Robin Riblet in Santa Barbara also approved trustee David Gould’s request to hire a longtime Southland construction industry executive, James Johnson, to take over day-to-day operations at Baldwin Co.

Brothers James and Alfred Baldwin, who own the company and put it into Chapter 11 bankruptcy reorganization with more than $245 million in debt last year, were removed from operating control in April.

Johnson, president of Lusk Co., another privately owned Newport Beach home builder, will take over operations at Baldwin immediately. It was not clear how the new job will affect his position at Lusk. Johnson could not be reached for comment.

His principal role at Baldwin, according to an attorney representing Baldwin Co. creditors, will be to polish up the company’s uncompleted developments in Orange, San Diego, Los Angeles and Ventura counties to make them easier to sell to other builders or investors.