10 — THE BAKER COUNTY PRESS
FRIDAY, AUGUST 12, 2016
Sunridge
CONTINUED FROM PAGE 3
Clark responded as follows:
“”Mr. Town has turned the management over to an
admittedly competent, loyal, and effi cient employee. Ms.
Wilson’s leadership has led the Debtor to glean $89,000
more (bold type) in revenues than was projected for this
month and reduced expenses. This Court could well
determine if effective safeguards are or could be put into
place to preserve her management at this time while the
sale is being consummated, and provide for an effi cient
and even immediate remedy if Mr. Town attempts to
circumvent her authority or direction. Considering the
sale is imminent (the contract was just completed today,
August 3, and is being reviewed prior to submission to
the Court and creditors; it is designed to provide for a
100% payment to claimants), moving to appoint a trustee
at this juncture is counter-productive.”
McClurg’s fi nal claim was made as follows:
“The debtor is in the midst of negotiating a sale of
substantially all of its assets, which will require someone
with adequate authority for the debtor to evaluate the
proposed transaction and consummate it, if appropriate.
A chapter 11 trustee, rather than Town, should engage
in the negotiations and analysis of whether the proposed
transaction is appropriate and in the best interests of the
estate.”
Clark responded:
“This Court should not rush to judgment on this issue
at this time for several reasons. First of all, the current
management is effi cient, in full compliance with the Code
and Rules, and has even received praise from the US
Trustee. Secondly, the US Trustee has not thought of the
ramifi cations of putting a trustee in place who cannot sell
all of the assets of this operation. Please remember that
Townridge, Inc. owns the hotel franchise, the goodwill,
the personal property, but not the land or buildings.
Those are owned by Town Properties, LLC, which is not
in bankruptcy. How, pray tell, would a Trustee be able to
consummate a sale of the entire hotel under that situa-
tion? The proposed contract is actually two (underlined)
contracts, one for Debtor and one for Town Properties.
A Trustee would have no right to attempt to sell the real
property without some substantial legal machinations.
Nor would a Trustee have the right to pick another deal
unless Town Properties joined in.”
A hearing via telephone was scheduled for Thursday,
August 11, 2016, 11 a.m., on the US Trustee’s First
Amended Motion for an Order Directing the Appointment
of a Chapter 11 Trustee. Testimony would not be received
at that hearing, according to bankruptcy records.
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Ways
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