Core Communities LLC, the company behind the Tradition community and Port St. Lucie’s biggest developer, is trying to renegotiate two major loans as the value of its property has dropped.

Core’s parent company, Fort Lauderdale-based Woodbridge Holdings Corp. (Pink Sheets: WDGH), warned in its first-quarter report last week that Core was dealing with “cash flow deficits” and said its lenders are seeking payments to more closely align two development loans with the depleted value of Core’s land.

The deterioration of the real estate market and the possibility of those cash payments “raise substantial doubt regarding Core’s ability to continue as a going concern,” Woodbridge states in the filing with the U.S. Securities and Exchange Commission. And Woodbridge points out that it’s under no obligation to inject cash into Core. (more…)