Ford's Colony Bankruptcy Case Makes Progress

Thursday, November 11, 2010

Ford’s Colony Country Club, which filed for Chapter 11 bankruptcy protection in March, has been making progress in mediation discussions with lender Prudential and will solicit input from members on a reorganization plan.

 

Over the past several months, the case became so bogged down by legal proceedings the court asked the two parties to enter into mediation discussions (read a previous WYDaily story here). Country Club General Manager Steve Dreybus sent a letter this week updating members on the mediation process, saying, “We believe we have an agreement on many core issues, but it is not final at this time.” The parties updated the judge on November 4, and will give a new update on November 17, which Club management hopes will include a formal agreement between the parties.

In the meanwhile, the Club still needs to come up with a plan for reorganization that “stabilizes the Club's operations and treats all creditor claims fairly,” according to Dreybus' note. Part of that process will include the establishment of the unsecured creditor class categories, which will organize members into premier, platinum, active and resigned members.

Club members are the majority of the unsecured creditors, and those with “refundable” memberships will have a chance to vote on the plan, according to Dreybus.

“Even under the most favorable negotiations, meeting our obligations to Prudential will necessarily limit distributions we can offer unsecured creditors, including members, under the Plan we will put forth for your vote,” he wrote. “We trust you will agree that it is fair and in your best interests as a member.”

There is a Creditors’ Committee participating in the mediation. In an earlier update at the end of September, Dreybus reminded Club members that “it is important that our members stay involved and work through the Creditor's Committee to ensure that your voices are heard and your interests are protected.”