Park City’s Premier Resorts/Deer Valley Lodging bankruptcy still unresolved
May 21, 2009
Premier Resorts of Utah has more time to defend its solvency for the federal bankruptcy court in Salt Lake City. Judge Judith A. Boulden at a hearing on May 19 postponed decisions on many requests from debtor Deer Valley Lodging, owned by Premier Resorts of Utah, and creditors including Mark Lampe, president of the home owner’s association at The Lodges at Deer Valley, who initiated the involuntary bankruptcy process on April 27.
The case involves a dizzying array of players including two attorneys from Durham Jones & Pinegar representing Premier Resorts of Utah, nine other attorneys representing 35 individuals, at least two companies and nine home-owner associations. The May 19 hearing revolved around two requests. The first were from the home and condominium owners for a "lifting of the stay" imposed on creditors in the event of an involuntary bankruptcy request. The stay allows the debtor to continue operating as normal, but prohibits creditors from taking further action to recover their money.
The second request was from Premier Resorts International to delay the appointment of a trustee who could potentially take over the Utah company’s finances.
Judge Boulden ordered the May 19 hearing to be "preliminary" and postponed decisions until May 28 effectively leaving the stay on home owners in place and granting Premier Resorts more time.
One action taken at the hearing was an approval of an agreement between Premier Resorts and Trail’s End Lodge at Deer Valley that would release Premier Resorts from liability in exchange for a lifting of the stay.
A May 19 letter sent to homeowners from Premier Resorts explains that many cancellations of the month-to-month contracts between owners and the company have been received, but cannot be honored because of the stay.
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In exchange for not taking any further legal action for damages after the owed money is paid, Premier Resorts will recognize cancellations of contracts. Boulden accepted this proposal between the two entities.
Attorney Joe Wrona, representing many individual owners, said he couldn’t "see how Premier Resorts believes it is in a position to dictate to unit owners at this point in time."
The court documents are full of accusations and replies between the debtors and creditors.