At least it's a reorganization and not a liquidation, so hopefully the park, and Blue Streak, can survive.

It will now likely survive this bankruptcy...but for how long and how well remains to be seen.

Here is the full statement from the park/trustees

Sent from my iPhone using Tapatalk

I will have to see what I can do to make it there this season, simply to ride Blue Streak.

You must! Great ride!

Band-aid.

Broken leg.

Word in legal circles is the park has decided not to sell water park passes at this time. Those who paid for a water park pass or combo pass will receive a refund.

While the water park is "phased in," all day water park passes will be sold for $5.

Amusement park season passes are on sale for $49.99.

Interpret this as ye will.

Still planning to stop by there when I'm up that way in July if they do open as planned. It may be my only chance.

Both sides have now agreed to a JOINT reorganization plan.

The Court has scheduled a JUNE 3, 2016 hearing.

It is likely the park will emerge from reorganization a much smaller organization with weak financing and much less real estate.

Local media has been silent about this major news. Perhaps they do not realize the impact.

Stay tuned.

Yesterday, the Meadville Tribune published the above as if it were news.

They would want me to post a link.

Would this be what you needed?

http://www.meadvilletribune.com/news/local_news/conneaut-lake-park-trustees-tax-creditors-to-file-bankruptcy-plan/article_436907fe-3dc9-5794-9ea9-a53e1455f874.html

They limit reads. Paywall.

There is no news there.

I didn't think they deserved a link.

Changed my mind on commenting about said articles.

Edited May 4, 201610 yr by chugh43

There's probably a certain number of articles you can read per week/month for free before hitting said paywall.

5 a month.

It's always good if a newspaper prints news.

That one seldom does...

Legal circles indicate Park Restoration LLC has won its Beach Club Insurance appeal and has been ruled entitled to the entire $611,000 insurance proceeds, with the Trustees and tax creditors entitled to $0, not the $482,260.75 the bankruptcy judge said the tax creditors were to get.

So does that mean the money goes to the park itself?

No. The opposite. Park Restoration LLC is a former operator of the Beach Club.

This means the park now must come up with $482,260.75 more to pay the tax creditors, since the insurance company won't be paying them.

Park Restoration LLC had bought and paid for the insurance policy. The Beach Club was subsequently destroyed by fire. The bankruptcy judge had determined that someone who neither bought nor paid for the policy and to whom the buyer owed nothing was somehow entitled to part of the loss payment.

Terp, who is not engaged in the private practice of law in the Commonwealth of Pennsylvania, the District of Columbia or any United State. No legal advice meant for any particular client is contained herein. No attorney client relationship is created by the reading of this post. Insurance law is a specialty. Consult a competent advisor in the legal and/or insurance field if you have, or think you may have, an insurance or legal problem. Reading disclaimers can be tedious. This is a disclaimer.

Sooooo.

 

Basically, Your sayin the money is going into someones bank account that has nothing to do with the park anymore. And pretty much said the h#ll with the park and the creditors. Wasn't the Beach Club part of the park when it burned?

 

Sounds to me like the only one gettin helped out is the guy that took out the policy.

As it should be.

Okay, so, Park Restoration LLC was the former operator of the Beach Club. Did they also OWN that property? Or did the park own it and just hire them as an operator? Because I don't understand how they can insure something that they didn't own themselves.

 

If Park Restoration LLC owned it and insured it, that makes perfect sense that they wouldn't be entitled to the insurance.

 

Just a lil confused!

 

The park had the responsibility to insure the building. It didn't.

Park Restoration LLC did.

That makes a little more sence. I was under the impression Park Restoration LLC and the park we're one entity.

I'm going to assume then the debt built up then had nothing to do with Beach Club itself?

What a mess that sounds like.

It's a shame that the park now has to come up with more money, but it also doesn't make any sense as to why the trustees would get any money when they didn't even pay for the insurance policy.

Those same Trustees leased the Hotel Conneaut to Park Restoration LLC. Among the terms were that Park Restoration LLC could invest in repairs and improvements in the Hotel, and set the cost off against the rent. When Park Restoration LLC did so, the Trustees claimed Park Restoration LLC was behind in the rent, declared the lease in default, and seized the Hotel.

I weep not for the Trustees.

As ye sow, so shall ye reap. . .

Conneaut Lake Park's insurance on the convention hall is about to expire. Cost? $5,500.

The park doesn't have it, and has been unable to get a loan for that amount.

Bankruptcy court hearing on the matter set for Tuesday next.

A park that doesn't have and can't borrow $5,500? THIS is a going concern? This is a reorganizable business?

Word in legal circles is that the most recent Beach Club insurance payout ruling is being appealed by the taxing authorities/creditors...

So back to what I was askin earlier in this thread.

Can they do that since it's two separate entitys?

The Courts will ultimately decide...

Financing hearing today...for $5,500.

How many attorneys billing how much and how much court costs and taxpayer money being spent?

This park can't get an unsecured loan for $5,500.

Ponder that.

I will likely be in Cleveland this weekend.  My plan is to go over to Conneaut Lake Park and Waldameer Park at some point.

 

But I have to wonder if CLP cannot find $5,500 to pay for insurance how is it expected to open in four days on Saturday?