Update from the Ford’s Colony Home Owner’s Association on the Country Club

The November 18 court hearing resulted in the Court denying creditor Prudential their request to end the Chapter 11 bankruptcy protection status for the Ford’s Colony Country Club. The parties will reconvene on January 13. The following is an excerpt from a statement from the Ford’s Colony Home Owner’s Association:

At the end of the hearing on November 17, the Court ruled against Prudential on the Motion for Relief from Stay. However, the Court noted that the members, residents and the creditors needed some assurance that this process would move toward prompt resolution. To that end, the Court also denied the Debtor’s request for an extension of the exclusive period during which only it could file a plan of reorganization. The Court decided not to rule on the classification request until a plan is produced.

The Court reemphasized the importance of resolving this case and particularly recognized the membership as critical to financial viability.

In summary, FCCC remains in operation and the Debtor can continue it efforts to produce an effective reorganization plan. The Creditors Committee can work with the Debtor and Prudential collectively or separately to produce a Plan for the Court’s consideration. The next Court date is December 13 to hear arguments on the value of Prudential’s claim against the Debtor’s assets. On January 13 the Court will hear arguments on the consolidation of the entities (Ford’s Colony Country Club and Marsh Hawk Golf Club). A status report on the development of a comprehensive Plan of Reorganization and any alternative Plans is scheduled for January 18.

The Committee’s overall objective remains that the Club be financially viable, well run and continue to be an important asset for members and residents. In this the way, the unsecured creditors would also have the possibility for some return. The Creditors Committee continues to believe adequate financial transparency is a vital component of an acceptable Plan.

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