We have been waiting a long time for this but, finally, after many months of negotiations and a big win in the courts vacating the 1990 Lake Elaine Judgment, we are at a point where we can move forward with the next steps of our reorganization process. Thank you for your patience, input and support.
This is how we are progressing:
An Amended Disclosure Statement (Statement) and Reorganization Plan was filed with the bankruptcy court yesterday. The Statement took into consideration updates since the original filing including the agreement reached with Flagstaff Golf Association (Aspen Golf Club), creditor objections that were raised earlier, and finalizing the proposed special assessment and dues increase for homeowners.
Creditors will have until May 5 to file further objections, if any. A hearing for the Bankruptcy Court to consider approval of the Statement has been scheduled for May 12. Approval means that the Statement includes the requisite information for creditors to make an informed decision about voting to approve the Reorganization Plan. It is not final approval of the Reorganization Plan. In the event approval is not received at the May 12 hearing, the Statement will be amended, and another hearing will be scheduled for approval.
Once the Statement is approved by the bankruptcy judge, the next step will be to reach out to homeowners for approval of the two fees described in the Statement: a special assessment and dues increases. At the same time, the judge will impose a ballot deadline for our creditors to vote on the Reorganization Plan.
We anticipate mailing the ballots for approval of the special assessment and dues increases required to fund our Plan of Reorganization to homeowners shortly after the Statement is approved, around late May or early June. Homeowners will have 30 days to complete and submit both ballots.
A meeting will be scheduled at the end of that 30-day period for announcing the results. A 60% quorum is needed and both ballots must be approved. Some of you are interested in better understanding how the voting process will work for this effort, and we plan an upcoming message on that subject. The two fees that our members will be asked to approve are the same fees that were proposed in our October Town Hall, which were outlined in an earlier Things to Know message.
When our homeowners approve both ballots and our creditors have responded, the plan will go before the bankruptcy court for confirmation. We plan to have upcoming messaging on what the plan confirmation entails.
Please continue to send your opinions, comments, and suggestions to board@continentalflagstaff.com – we appreciate hearing from you.