A key creditor of LandSource Communities Development wants the bankrupt developer to sell its 15,000-acre tract of land north of Los Angeles to repay $1.1 billion in loans.

Barclays Bank, agent for the lenders who made the loans, proposed a plan that would grant some creditors the right to trade the debt owed to them for some of LandSource’s property through a bidding process.

Barclays filed the proposal in U.S. Bankruptcy Court in Wilmington, Del., on Oct. 13. LandSource filed for Chapter 11 bankruptcy protection in June after failing to restructure its debts.

LandSource owns Newhall Land and Farming, which is developing the 21,000-home Newhall Ranch community near Santa Clarita. Documents filed with the Bankruptcy Court said the property in Newhall and Valencia was worth $2 billion when it was assessed two years ago.

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