New Chapter 11 Filing - Mountain Creek Resort

Mountain Creek Resort

  • 5/15/17 Recap: This gives whole new meaning to the term "ski bums." Owner and operator of four-season resort (including a water park and a ski resort) filed for bankruptcy after suffering through (i) seasons of warm winters, (ii) a downturn in the residential real estate market locally, and (iii) a poor litigation outcome that put the business on the hook for millions. The company has lined up $6mm in DIP financing to fund its case. Meanwhile, folks living in the Township of Vernon, New Jersey, can sh*t bricks (see comments within) and try and figure out what the hell happens now that the $27mm owed to the Sussex County Municipal Utilities Authority is in danger of not being paid. See, the prior owner of the resort entered into various agreements with the Township for the construction of sewer capacity to support the Resort. The Township issued bonds to finance the costs of construction and the resort is apparently contractually obligated to reimburse the Township for costs associated with the issuance (naturally, the geniuses in the government didn't bother with a security interest (other than a paltry/limited LOC) and, even if they did, they'd probably be SOL anyway given M&T Bank's senior status in the capital structure). 
  • Jurisdiction: D. of New Jersey
  • Capital Structure: $22.7mm senior debt (M&T Bank), $7mm junior debt (HSK-MC LLC) & various promissory notes    
  • Company Professionals:
    • Legal: Lowenstein & Sandler LLP (Kenneth Rosen, Jeffrey Prol, Nicole Fulfree, Michael Papandrea)
    • Financial Advisor: Getzler Henrich & Associates LLC (Mark Samson)
    • Investment Banker: Houlihan Lokey Capital (Jeffrey Altman)
    • Claims Agent: Prime Clerk LLC (*click on company name above for free docket access)
  • Other Parties in Interest:
    • M&T Bank
      • Legal: Greenberg Traurig LLP (Diane Vuocolo, Kevin Ray)
    • Township of Vernon
      • Legal: McElroy Deutsch Mulvaney & Carpenter LLP (Eric Perkins, Louis Modugno)
    • Prepetition Lender & DIP Lender: HSK Adventures Inc.
      • Legal: Tarter Krinsky & Drogin LLP (Rocco Caveliere, Scott Markowitz, Alex Spizz, Arthur Goldstein)
    • Official Committee of Unsecured Creditors
      • Legal: Trenk DiPasquale Della Fera & Sodono PC (Joseph DiPasquale, Adam Wolper, Robert Roglieri)

Updated 7/12/17

New Filing - Gracious Home LLC

Gracious Home LLC

  • 12/15/16 Recap: New York based consumer products retailer of home furnishings (i.e., china, glassware, metalware, and all kinds of other things that millennials scoff at buying) files for bankruptcy to salvage what's left of its liquidating business after failing to renegotiate with its lender and landlords. This is its second bankruptcy filing in 6 years.
  • Jurisdiction: S.D. of New York 
  • Debt: $6.5mm secured debt (Signature Bank)
  • Company Professionals:
    • Legal: Trenk DiPasquale Della Fera Sodono (Joseph DiPasquale, Irena Goldstein)
    • Financial Advisor: B. Riley & Co. (Perry Mandarino, Adam Rosen, Daniel Golynskiy)
    • Claims Agent: Prime Clerk LLC (*click on company name for docket)
    • Other Parties in Interest:
      • Official Committee of Unsecured Creditors:
        • Legal: Seward & Kissel LLP (John Ashmead, Robert Gayda, Catherine LoTempio, Michael Tenenhaus) 
        • Financial Advisor: Wyse Advisors LLC (Michael Wyse)
      • Gracious Home Lending LLC
        • Legal: Arent Fox LLP (Robert Hirsh)

Updated 5/12/17