Posts Tagged District Court

Cordillera bankruptcy case back in Colorado – Vail Daily


 

Delaware judge sends it to Denver bankruptcy court
By Randy Wyrick
rwyrick@vaildaily.com
Vail, CO Colorado
EDWARDS, Colorado — A Delaware bankruptcy judge ruled that since the 610 people suing David Wilhelm are in Colorado, the Cordillera bankruptcy case should be here, too.

Judge Christopher S. Sontchi punted the case to Colorado, where it landed before Judge Bruce Campbell in Denver’s federal bankruptcy court.

“The judge made the determination that this is where Cordillera’s past, present and future members are, so this where the case needs to be,” said Cheryl Foley, one of the lead plaintiffs in the class-action lawsuit against Wilhelm and the Wilhelm Family Partnership.

Campbell held a status conference Friday afternoon to figure out what he has in front of him.

“Everything filed in Delaware has to be moved here,” Foley said.

Wilhelm’s Cordillera Golf Club LLC filed for Chapter 11 bankruptcy protection last month in Delaware, where the company is chartered.

“The Delaware judge’s ruling was meant to create an opportunity for meaningful discussions toward resolution between the club ownership group and its adversaries,” said Chris Celentino, the bankruptcy attorney representing Cordillera Golf Club. “I think the impetus is to encourage the debtor’s adversaries to take a more positive view toward working with the club to reach a productive resolution.”

In a related criminal matter, District Court Judge Frederick W. Gannett postponed Friday’s contempt of court hearing against Wilhelm. The hearing is tentatively set for Aug. 6 to 8.

Celentino and others with Cordillera have said the litigation against Wilhelm stems from a small and vocal minority.

But according to court documents, 623 people are eligible to be part of the group suing Wilhelm; 610 are officially in, and 13 have opted out.

It was 609 until Thursday, when one more person joined the class-action lawsuit.

“That’s not my definition of a small group of people. Characterizing this as a small group of unhappy members is delusional,” Foley said.

The Delaware bankruptcy trustee appointed a committee representing the unsecured creditors. That committee includes six club members, Foley among them, and two people from trade organizations.

“The bank and debtor have agreed to an interim financing agreement to provide more time to work out a long-term solution that will enable the club to restore itself,” Celentino said.

Wilhelm and the Wilhelm Family Partnership filed bankruptcy the day a $12.7 million loan was due to Alpine Bank. The bank has agreed to extend credit through the summer.

The Wilhelms and some Cordillera Club members have been locked in litigation for more than a year.

Last spring, Wilhelm promised to open all four Cordillera golf courses but opened only the Valley course and laid off dozens of workers. Some of the members — now 610, to be exact — sued him in a class-action lawsuit saying opening only the one course violated the membership agreement.

Their lawsuit asks that the $8 million in 2011 dues be repaid and that all the membership deposits be refunded — that could total $108 million.

Wilhelm sued them for $96 million, claiming they were trying to drive him out so they could take over.

 

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Cordillera Update from the Eagle County Times: Cordillera Golf Club litigation heats up


December 4, 2011 by eaglecountytimes

by Paul Drake and Della Street – Sunday, December 4th 2011

Local Alpine Bank – files in District Court against Cordillera Golf Club, LLC (read:WFP, Wilhelm Family Partnership et al).

Recent public record Court Filings show that the owners of the Cordillera Golf Club took out a Note with Alpine Bank for $13.7 Million on 26JUN2009.  This loan from Alpine Bank was a performing loan right up until, October 26th 2011, when CGC, LLC failed to make the monthly payment due Alpine on that date.

Court documents show – per the loan agreement Alpine wasted no time notifying the borrower of their obligations and notifying borrower of what Alpine’s legal remedies are per their signed 26JUN2009 loan agreement.

Since the CGC, LLC has since failed to pay…on November 25th 2011 Alpine filed in District Court with a legal request to put the Cordillera Golf Courses in (limited receivership) as is Alpine’s right per their agreement Court documents show.  Alpine’s loan to CGC, LLC was secured in part by the condition and existence of all Cordillera Golf Courses…not to mention the annual membership dues paid by Golf Course members.

As of December 4th 2011, the District Court Judge – Thomas Moorhead has not ruled on Alpine’s request for limited receivership.

What we also know…Last month (in a separate/different civil case – 2011CV552) the Cordillera Golf Club membership litigation was Granted “Class Action” status by District Court Judge Fred Gannett for a lawsuit against the Wilhelm Family Partnership, who are the current owners of record for all Cordillera Golf Courses.

Further, the legal request filed by WFP to remove the individual lawsuit against (son Patrick Wilhelm) was denied by Judge Gannett as well.  Bottom line, the WFP and it’s owners continue to be sued individually.

What else do we know?  Traditionally, the Cordillera Golf Course would send out it’s annual membership dues bill that was due no later than January.

What we don’t know (yet)…is plenty

Will the WFP and it’s owner David Wilhelm file for Bankruptcy protection?  Don’t know yet.

Will the District Court Judge grant Alpine’s request for Limited Receivership?  Don’t know yet.

Will Alpine Bank – file – in order to start Foreclosure on all Cordillera Golf Courses currently owned by the WFP?  Don’t know yet.

Last years Cordillera Golf Course membership dues paid in January was ~$8 Million dollars in total.

What possible legal claim could the WFP make – should Judge Moorhead rule and grant a Limited Receivership?  Legal Claim that is, that the Annual Golf Course membership dues be paid to the WFP as opposed to the Receiver should one be appointed by Judge Moorhead?

BREAKING NEWS  Sunday, December 4th 2011 – Plaintiffs – Cordillera Golf Course membership (et al) file in District Court to have a “Contempt Citation” Issued against Wilhelm Family Partnership, LLC and against David Wilhelm personally. (Click Here)

On June 24th 2011, District Court Judge Fred Gannett entered a TRO (temporary restraining order) that further defined “what” the Owner (WFP) could spend Cordillera Golf Course Membership dues on (Click Here).  In short, exclusively for the care and maintenance of the Cordillera Golf Courses and Club Houses.  According to the (just filed) District Court Documents, Plaintiff’s claim WFP has ‘violated’ that TRO issued last June by District Court Judge Fred Gannett.

In their filing the Plaintiffs document several instances they claim have constituted a violation of that TRO, where the WFP has spent thousands on items and personal compensation not allowed (they claim) under Judge Gannett’s TRO.

We’ll all have to wait and see what happens next.

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