Just nine months after the developers of the Pine Canyon Golf Club and residential development in Flagstaff, Arizona filed Chapter 11 proceedings, the Honorable Redfield T. Baum, United States Bankruptcy Judge for the District of Arizona, entered an Order Confirming their Plan of Reorganization today. The developer and its lender were able to reach an agreement for the restructuring of their loans and the plan was submitted on a consensual basis.
“The agreement allows us to go forward with the financing necessary to maintain the high standards of the development which have been in place since its inception,” stated Warren Smith, President and CEO of Pine Canyon. “Although recent economic times have been difficult for everyone, Pine Canyon has emerged with an agreement with its lender, and will be paying all of its creditors in full. We look forward to a robust summer season and invite everyone to come see this truly special place.”
Jack Hebert of Polsinelli Shughart, P.C, counsel for Pine Canyon, believes that the “credibility of Pine Canyon’s management team, and the faith of the lender in that team, as well as the support of the members played a key role in the agreement reached by all parties.”
The Pine Canyon Club features an award-winning Jay Morrish-designed golf course and amenities, including a 35,000 square Clubhouse that has won awards in its own right. The residential development features condominiums, townhomes, single-family residences and lots for those wishing to construct their own homes. Over 100 people are employed at the community.