California Coastal Communities to Begin Solicitation of Creditors to Confirm Plan of Reorganization and Emerge From Bankruptcy

IRVINE, Calif., Jan. 12, 2011 /PRNewswire/ -- California Coastal Communities, Inc. (OTCQB: CALCQ) announced that the United States Bankruptcy Court for the Central District of California (the "Bankruptcy Court") has scheduled a hearing on February 16, 2011 to consider confirmation of the Company's plan of reorganization (the "Plan") with respect to its Chapter 11 bankruptcy cases. The Company will now commence solicitation of votes from its creditors in support of the Plan.

With the Plan supported by over 80% of its senior secured lenders, the Company expects it will obtain Bankruptcy Court approval of the Plan at the February 16th hearing and emerge from bankruptcy shortly thereafter; however, there can be no assurance in that regard.

Chief Executive Officer Raymond J. Pacini commented, "With the support of our lenders, we are on track to exit bankruptcy by the end of February. We look forward to the spring selling season and are well-positioned to provide unique coastal homes at our Brightwater project in Huntington Beach."

The Company is a residential land development and homebuilding company operating in Southern California. The Company's principal subsidiaries are Hearthside Homes which is a homebuilding company, and Signal Landmark which owns 110 acres on the Bolsa Chica mesa where sales commenced in August 2007 at the 356-home Brightwater community. Hearthside Homes has delivered over 2,300 homes to families throughout Southern California since its formation in 1994.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain of the foregoing information contains forward-looking statements that relate to future events or the Company's future financial performance. These statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," "hopes" or the negative of such terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about the Company's plans, objectives, goals, expectations and intentions with respect to the bankruptcy proceedings and the financing commitment, the number and types of homes that the Company may develop and sell, the timing and outcomes of court proceedings, lender negotiations, and other statements contained herein that are not historical facts. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict. Therefore, actual results may vary materially from what is expressed in or indicated by the forward-looking statements. The risk factors set forth under "Item 1A. Risk Factors" in our Annual Reports on Form 10-K and other matters discussed from time to time in our filings with the Securities and Exchange Commission, could affect future results, causing these results to differ materially from those expressed in our forward-looking statements. Currently, the risks and uncertainties that may most directly impact our future results include (i) the ability of the Company to continue as a going concern; (ii) the Company's ability to obtain Bankruptcy Court approval with respect to the Plan and other motions in the Chapter 11 Cases; (iii) risks associated with third party motions in the Chapter 11 Cases, which may interfere with the Company's ability to consummate the Plan as currently proposed; (iv) the ability to execute the Company's business and restructuring plan; (v) the Company's ability to maintain contracts that are critical to its operation, and to retain key executives, managers and employees. In the event that the risks disclosed in our public filings and those discussed above cause results to differ materially from those expressed in our forward-looking statements, our business, financial condition, results of operations or liquidity could be materially adversely affected. Accordingly, our investors are cautioned not to place undue reliance on these forward-looking statements because, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. Further, the forward-looking statements included in this release and those included from time to time in our other public filings, press releases, our website and oral and written presentations by management are only made as of the respective dates thereof. We undertake no obligation to update publicly any forward-looking statement in this release or in other documents, our website or oral statements for any reason, even if new information becomes available or other events occur in the future.

SOURCE California Coastal Communities, Inc.