Judge Issues Go Signal on the Bankruptcy Sale of Conneaut Lake Park

by San Antonio Attorney

Chief U.S. Bankruptcy Judge Jeffery Deller has issued a final ruling on the Conneaut Lake Park bankruptcy case, approving the sale of several sections of the park in order to settle more than $1 million outstanding debt.

Despite initial resistance from ex-owner Gary Harris, stakeholders are confident that the decision will allow both creditors and debtors to implement the reorganization plan intended for Conneaut Lake Park.

Attorney Guy Fustine sees it as an acceptable compromise.

He said the park will be sold and the proceeds will be distributed to the creditors. He also said they want the park to continue operating for the community’s benefit.

Under the reorganization plan, five lakefront residential properties situated within the park will be sold for fair market price, for approximately $260,000, or to the highest bidder.  One has already been sold, while the other four are expected to sell prior to the 2017 season.  The cash from the sale, combined with the projected earnings of the park for the 2017 and 2018 seasons, are intended to cover all outstanding debts.  In case of a shortfall, selling Hotel Conneaut will be considered as a backup plan.

Last December 2014, the trustee overseeing the company filed for Chapter 11 on behalf of the park to reorganize the park’s debts.  Conneaut Lake Park, which recently enjoyed a significant increase in revenue compared to last year’s figures, is closed for the 2016 season, but will be opened again in 2017.

When a person or entity files for bankruptcy, the automatic stay prevents creditors from seizing the bankruptcy filer’s assets. During the period of bankruptcy, the debtor’s is allowed to reorganize its financial affairs with the approval of a bankruptcy court.  If you or your business is troubled by unmanageable debt, you should seek legal help from a San Antonio Bankruptcy attorney.

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