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Whither Conneaut Lake Park Now?


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BUT where is the labor, taxes, insurance, utilities, maintenance, cost of goods.... not to mention capital spending?

 

Probably part of that $300,000. Unless I've missed something, I doubt that those new loans have to be fully paid back in a single year. More likely, they are multi-year loans.

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  • 2 weeks later...

Against my better judgement, but based on the urging of a friend I made the 2 hour drive CLP yesterday.  The only other time I've been there was over 3 years ago.  The Blue Streak was not running so I didn't get the credit.  My buddy has been advising me to ride it ever since then.  I was always apprehensive about going back, but decided to.  So I get there and the Blue Streak is not running for the day, of course.  So I do my best to gather my thoughts, and rode the Devil's Den 6 times and Tumble Bug once.  The place is just pitiful.  From the warped sounding carousel music, to being out of funnel cakes, rides not running, cigarette butts littering the ground, the gift shop not accepting credit cards and making customers walk out to the ticket booth to pay for their items, and then come back, as well as no soap in the women's restroom, the pitifully sparse looking midway games...etc...etc..etc.  I'm surprised there was as many people as there was in attendance yesterday.  Just needed to vent, no one to blame but myself for going back up there.  

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And now the "full" story is posted:

http://m.meadvilletribune.com/news/local_news/full-story-conneaut-lake-park-bankruptcy-plan-expected-this-week/article_fa51ab2e-35a9-11e5-9ff1-2770c1b3ca5b.html?mode=jqm

I love how the media keeps focusing on only the taxes due governing bodies. The fact is the debts to other creditors far exceed that amount. How this debtor is going to stay in possession and not have its assets liquidated is beyond me.

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It really sounds like none of the people running the park now have any more clue what they're doing than the ones who were running it before. They seem to assume they'll just magically be able to get enough money together to keep things running, but they're not really trying that hard.

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So, the Trustees blustered to local media they'd file the reorganization plan by Friday (though it's DUE early next week).

That either didn't happen (again) and lawyers are feverishly working all weekend to come up with a workable plan, or it did and the park boostering local media has chosen not to cover it, for whatever reason.

Some enlightening history, more relevant now than ever:

http://www.goerie.com/conneaut-lake-park-creditors-push-to-see-payment-plan

What's the plan, Stan?

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* Plan filed.

* Secured non-tax debt to be paid off over 20 years at 5% interest. Non-secured?

* Hearing set for September 1 at 1 PM.

http://m.meadvilletribune.com/news/local_news/trustees-of-conneaut-lake-park-s-bankruptcy-hearing-coming-next/article_3d1300dc-3a5c-11e5-940a-87bf8f55c9ad.html?mode=jqm

I can't see the non-tax creditors not objecting and proposing the property be liquidated. In other words, straight bankruptcy, not re-organization.

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A much clearer article:

http://wkbn.com/2015/08/04/conneaut-lake-park-bankruptcy-plan-hearing-set-for-sept-1/

So, the Trustees intend to use an insurance settlement that almost certainly does not belong to them to reduce debt?

And they intend to pay off the secured non-tax debt over 20 years with revenue from a park that has consistently lost money for years and years?

Really?

The creditors are going to love this!

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Update: So far so good. May, June and July attendance and revenue at CLP have generally exceeded our expectations. We continue to make good progress regarding amusement ride maintenance and operations, and with improvements to the Amusement Park and Camperland. As of today, for the first time in many years, literally all rides are in operation (although keeping them so is an on-going challenge). According to Lenny Adams, previous amusement park operator, revenues in July alone were better than the entire 2014 season!

Our formal disclosure statement and plan of reorganization have been submitted to the US Bankruptcy Court and we are hopeful that it will serve as a strong basis to achieve a consensus among creditors leading to plan certification by the court in the near future. A September 1, 2015 hearing has been scheduled to review the plan and reaction to it. The plan involves selling the former Flynn property; paying all back taxes immediately, and the remainder of all secured creditors over time, proposed to be 20 years. Paying creditors over time will require that operations at Conneaut Lake Park produce sufficient cash flow each year to meet this obligation. Our experience to date, while very short in duration, has produced enough information to indicate that this is a very practical possibility. However, to do so will require that we make investments like those evidenced at Camperland ahead of any anticipated new revenues. So, don’t expect that revenues will exceed expenses for a year or so. We’ve managed to borrow funds from the EPACC and the Northwest Commission that do not have to be repaid for a couple of years. These funds are being utilized to make physical improvements at the Park and to fund short term operating losses.
Also in the near future, the US Bankruptcy Court will decide the matter of the rightful distribution of the insurance proceeds resulting from the Beach Club fire. If any portion of these proceeds is allocated to back taxes associated with the Beach Club or otherwise awarded to the Trustees of CLP, the outstanding debt burden will be reduced.
The next couple of months will be critical to the future of Conneaut Lake Park. Your support so far this summer has and will continue to be hugely important as we demonstrate the viability of our plan. After so many years of deficit operations, we absolutely need to demonstrate that we can reach operational sustainability and meet our commitments in the future. With your continuing and growing support, we feel certain we will be able to do so.
Please stay tuned and supportive!

Conneaut Lake Park Facebook

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I can definitely see why he'd be skeptical. Sketchy property value estimate, taking into account money that you may not even get, telling debtors that even after 20 years they might just "make a modest recovery" instead of seeing the full amount they're owed... What a mess.

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  • 2 weeks later...

No press coverage to amount to anything on the creditor objection filings.

Tuesday is the next critical hearing, though the decision on the Beach Club insurance proceeds (but NOT the reorganization plan) has been delayed until later in September.

The future of Conneaut Lake Park as a park will likely be determined by the end of September.

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