Promontory Emerges from Bankruptcy
Promontory Emerges from Bankruptcy - Successful Bidder is Affiliate of Original Developer
by Business Wire
PARK CITY, Utah--(BUSINESS WIRE)--The U.S. Bankruptcy Court, District of Utah, today confirmed Pivotal 7000, LLC, an affiliate of Promontory's original developer, Pivotal Group, as the winner of the recent auction of Promontory, a luxury second-home community in Park City, Utah. Bankruptcy Judge Judith A. Boulden named Pivotal's bid as the winner, finding it to be in the best interests of Promontory and its members and creditors.
Promontory was forced into bankruptcy by its secured lienholders in March 2008, as a result of the global downturn in real estate. Since then, real estate development and Club operations at Promontory have continued uninterrupted under debtor-in-possession financing provided by another Pivotal Group affiliate.
Francis Najafi, CEO of Pivotal Group, said: "We are pleased to have Promontory back in the hands of its original development group. We intend to press forward with our vision for this world-class, second-home community, and to redouble our involvement with the local Park City community. We have continued to fund Club operations at Promontory throughout this difficult process. Our new financing provides us the means to continue development and Club operations at the same high level our members are accustomed to, notwithstanding the current downturn in the economy. We have full confidence that both Promontory and the Park City market will be among the first real estate markets to recover as stimulus programs take hold and the national economy begins to rebound. Meanwhile, America's restored international image, combined with the inexpensive dollar, will make Promontory and Park City even more attractive for international buyers."
"Promontory's reemergence from bankruptcy, with new financing in place, should be viewed as good news for Promontory's owner/members and for the hundreds of Promontory employees who work and live in the Park City Community," said Rich Sonntag, Promontory's managing director. "The other great news is that prospective buyers in this market can feel very confident when considering Promontory. We now have a court-approved plan of reorganization and an ownership which has been confirmed as financially solid. This is the kind of confirmation that buyers need in an uncertain market."
Promontory's plan of reorganization binds Pivotal 7000, LLC, as the new owner, to observe key provisions of the court-approved plan and sale procedures. These provisions include the obligation to honor Promontory's county-approved master plan, the Promontory Club's membership agreements and membership plan, and the assumption of all lot purchase agreements with Promontory lot and home owners. In addition, provisions have been made in the plan for funding of legitimate unsecured creditor claims and the creation of a reserve fund for Promontory's homeowners' association, the Promontory Conservancy.
Promontory Club members experienced a very positive year despite Promontory's ongoing financial reorganization. Club programming and member participation actually increased and members expressed pleasure with the extremely high quality of service they received throughout the year. With two golf courses in top shape, Promontory also received three top rankings by Golf Digest magazine in 2008, including the #3 Best New Private Course in the country, the Painted Valley Course - a Jack Nicklaus Signature Design. In addition, Promontory's Jack Nicklaus and Pete Dye designed courses were ranked by Golf Digest as numbers 2 and 3 respectively in the state of Utah.
by Business Wire
PARK CITY, Utah--(BUSINESS WIRE)--The U.S. Bankruptcy Court, District of Utah, today confirmed Pivotal 7000, LLC, an affiliate of Promontory's original developer, Pivotal Group, as the winner of the recent auction of Promontory, a luxury second-home community in Park City, Utah. Bankruptcy Judge Judith A. Boulden named Pivotal's bid as the winner, finding it to be in the best interests of Promontory and its members and creditors.
Promontory was forced into bankruptcy by its secured lienholders in March 2008, as a result of the global downturn in real estate. Since then, real estate development and Club operations at Promontory have continued uninterrupted under debtor-in-possession financing provided by another Pivotal Group affiliate.
Francis Najafi, CEO of Pivotal Group, said: "We are pleased to have Promontory back in the hands of its original development group. We intend to press forward with our vision for this world-class, second-home community, and to redouble our involvement with the local Park City community. We have continued to fund Club operations at Promontory throughout this difficult process. Our new financing provides us the means to continue development and Club operations at the same high level our members are accustomed to, notwithstanding the current downturn in the economy. We have full confidence that both Promontory and the Park City market will be among the first real estate markets to recover as stimulus programs take hold and the national economy begins to rebound. Meanwhile, America's restored international image, combined with the inexpensive dollar, will make Promontory and Park City even more attractive for international buyers."
"Promontory's reemergence from bankruptcy, with new financing in place, should be viewed as good news for Promontory's owner/members and for the hundreds of Promontory employees who work and live in the Park City Community," said Rich Sonntag, Promontory's managing director. "The other great news is that prospective buyers in this market can feel very confident when considering Promontory. We now have a court-approved plan of reorganization and an ownership which has been confirmed as financially solid. This is the kind of confirmation that buyers need in an uncertain market."
Promontory's plan of reorganization binds Pivotal 7000, LLC, as the new owner, to observe key provisions of the court-approved plan and sale procedures. These provisions include the obligation to honor Promontory's county-approved master plan, the Promontory Club's membership agreements and membership plan, and the assumption of all lot purchase agreements with Promontory lot and home owners. In addition, provisions have been made in the plan for funding of legitimate unsecured creditor claims and the creation of a reserve fund for Promontory's homeowners' association, the Promontory Conservancy.
Promontory Club members experienced a very positive year despite Promontory's ongoing financial reorganization. Club programming and member participation actually increased and members expressed pleasure with the extremely high quality of service they received throughout the year. With two golf courses in top shape, Promontory also received three top rankings by Golf Digest magazine in 2008, including the #3 Best New Private Course in the country, the Painted Valley Course - a Jack Nicklaus Signature Design. In addition, Promontory's Jack Nicklaus and Pete Dye designed courses were ranked by Golf Digest as numbers 2 and 3 respectively in the state of Utah.
posted by Peterson/Calder Group at
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