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SJW > SEC Filings for SJW > Form 8-K on 16-Jan-2009All Recent SEC Filings

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Form 8-K for SJW CORP


16-Jan-2009

Other Events


Item 8.01 Other Events.

SJW Land Company, SJW Corp.'s wholly owned subsidiary, was informed that one of its tenants filed a Chapter 11 bankruptcy on January 13, 2009 and intends to liquidate its operations through the United States Bankruptcy Court in Delaware. Such tenant currently leases a 148,000 square foot office building and a 346,000 square foot distribution building from SJW Land Company in Knoxville, Tennessee under triple net leases which have been paid through January 2009. Pursuant to applicable bankruptcy laws and bankruptcy court rules, the tenant will have a limited period of time to decide whether it will terminate its office and distribution leases or sell its rights under the leases. During the first three quarters of 2008, the net rent income contributed an aggregate of approximately $0.045 to SJW Corp.'s earnings per share. In the event that the leases are terminated, SJW Land Company will incur all holding costs and will seek to re-lease the premises. However, there will be no assurance that SJW Land Company will be able to secure a new tenant or if it is able to secure a new tenant, when this will occur or whether the leases will be under similar terms.

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