Continental Country Club Blog

Chapter 11 Reorganization Update

Update on Lake Elaine Negotiations as of 9/28: A long-scheduled mediation with the lakefront owners that was to take place on September 23 under the guidance of Judge Ballinger has been delayed at the request of the lakefront owners. It is now scheduled for November 4. We are looking forward to the opportunity to sit down with the majority of the lakefront owners to discuss a future for the Lake Elaine land and are disappointed to have more time pass without progress on a resolution, as we are anxious to put this issue behind us and move forward. We will continue to update you on the situation develops.

At the most recent bankruptcy hearing concerning Continental Country Club’s Chapter 11 filing, the judge overseeing the case expressed disappointment that the Continental Homeowners Association and the lakefront owners had been unable to come to an agreement regarding Lake Elaine.

At the urging of the bankruptcy judge additional effort is being undertaken to reach a settlement generally within the parameters of our proposed plan of reorganization, which included a proposal to initially spend $2,500,000 on Lake Elaine and estimated additional annual maintenance costs of approximately $30K per year for the site.

The lakefront owners are our neighbors. We remain hopeful that an agreement can be reached with our neighbors to bring peace to our HOA without incurring the further expense and uncertainty of litigation over the confirmation of our plan. Our efforts to reach such agreement will continue.

Our next hearing with the bankruptcy court is scheduled for September 15. We see three alternatives that are possible at the time of the next hearing:

  • The first is that a deal has been reached with the lakefront owners and we can share that with the bankruptcy judge at the hearing and proceed with confirmation of the plan.
  • Secondly, we could be close to a deal and we would ask the bankruptcy judge for additional time to reach a final settlement.
  • Lastly, we find ourselves at an impasse. In this situation, we would inform the bankruptcy judge that an agreement can’t be reached and we would ask that we move forward with the confirmation of the Reorganization Plan seeking to impose “Option B,” which would transform the lake into a series of habitat ponds and a walking trail).

The Board of the Continental HOA certainly hope we do not have to pursue the third option, as this would require a trial which would commence in late 2022.

The Board wishes to reiterate that we are hopeful that a deal can be reached generally within the parameters included in the reorganization plan. As a reminder to all homeowners, the special assessment and dues increases do not become effective until the reorganization plan is confirmed. As stated in the recent email to homeowners the special assessment will not be due until 90 days after plan confirmation. We are grateful to all homeowners for the support of the special assessment and dues increases as well as your patience as work through the final stages of the bankruptcy process.