By Curmudgeon
It's getting tough out there. The Salt Lake Tribune reports a judge granted Promontory Ranch Club Chapter 11 status so it could borrow enough money to "keep the lights on." The resort was planned to include 1900 upscale mansions. To date, 200 lots have been sold and built on. From the story:
A federal bankruptcy judge has granted Chapter 11 status to the ritzy Promontory Ranch Club near Park City.Full story here.
The action cleared the way for the resort to borrow money so it can make payroll and keep the lights on.
An order signed by Judge Judith Boulden on Tuesday allows Promontory's parent, Pivotal Promontory LLC, to immediately borrow up to $1.4 million to keep the resort operating.
It's a temporary solution that will buy time for two lending groups to find a long-term solution to Promontory's financial problems that have been blamed on the national credit crises, Salt Lake City-based attorney Kenneth L. Cannon said Wednesday
The Promontory Ranch Club, located east of U.S. Highway 40 in Summit County, covers some 7,000 acres and includes two 18-hole golf courses, a riding academy, club houses, restaurants and lounges.
The development is made up of more than 1,900 large home sites for upscale vacation homes. Only 200 have been built upon. The endeavor makes money primarily through the sale of its real estate.
In 2005, Promontory borrowed $275 million from a group headed by the Swiss bank, Credit Suisse. It also borrowed $75 million from a second group, now headed by Wells Fargo.
As our gentle readers will recall, we also discussed the Promontory Ranch problem in an earlier article.
1 comment:
Curmudgeon
Of course they are failing! It is basic Godfreyian logic why, plain and simple - they ain't got a Gondola! If they had thought it through and consulted our fine brilliant mayor, they would have built a Gondola first and insured their success.
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