American Development Corp., the one-time sister company...

American Development Corp., the one-time sister company of American Diversified Savings Bank in Costa Mesa, has filed a U.S. Bankruptcy Court petition to reorganize its debts under Chapter 11 of the federal bankruptcy laws.

The petition, filed last Friday in Santa Ana, listed assets of $8.4 million and liabilities of $7.8 million. About 750 employees nationwide, including 50 to 75 in the Costa Mesa office, face layoffs, said Jack Brooks, a company executive.

American Development is owned entirely by Ranbir S. Sahni, who also owned 96% of American Diversified. The savings bank was declared insolvent and taken over last February by regulators, who fired Sahni and hired a management team from Pacific Savings Bank in Costa Mesa to run the S&L; under a conservatorship.

The new managers of American Diversified continued to use American Development to manage the S&L;’s 165 properties in 30 states and to service some 100 real estate syndications.

All of American Development’s income came from its management contracts with the S&L; and its subsidiary, Brooks said. The company is believed to be the only money-making asset that Sahni had remaining.

The new savings bank managers, however, notified American Development on Aug. 1 that its management and service contracts would be canceled, effective Aug. 29. Brooks said he expects the contracts to be turned over to a dozen other management firms.

Pacific Savings executives running American Diversified did not return several telephone calls Tuesday concerning their actions.