The three reasons behind our filing for Chapter 11 Reorganization were estimated expenses to repair Lake Elaine, a $600,000 balloon payment to Sunwest Bank on a loan that was taken out to complete the 2011 installation of the new golf course irrigation system, and additional and ever-increasing costs to maintain aging facilities that far exceed the revenue we generate from our HOA fees, which are some of the lowest in the state.
This filing bought us time and leverage to restructure existing loans and seek relief from litigation and financial pressures.
The deadline to file our Plan of Reorganization is in early October. Major components of that plan will center around resolving the three issues stated above.
- We are continuing negotiations to achieve a settlement on the resolution of Lake Elaine and we remain optimistic that an agreement can be reached.
- Significant progress has been made with SunWest Bank and there is an agreement in principal to restructure and extend that loan obligation. A detailed Reserve Study is being used to assist us in forecasting the revenue that will be necessary to maintain our facilities and ultimately retire the SunWest debt.
- We have undertaken a comprehensive examination of our expenses, focusing on areas for improvement while maximizing value for our members.
Board President Jon Held has provided updates on the bankruptcy at the monthly Board of Directors meeting. We welcome all members to attend these meetings via Zoom to hear the latest details.
We understand most members are concerned with “how much” the reorganization plan will cost us all. Please be assured that our members will have to approve any proposed dues increases and/or special assessments and we are working hard to ensure a fair and responsible outcome for your consideration and approval.
Continental Country Club is a beautiful place to live, and we remain optimistic that we will emerge from this process with a strong future ahead of us. There will be forthcoming ‘THINGS TO KNOW’ messages on related topics. If you have a question, please send it to email@example.com.