Printer Friendly

DETROIT PENSION FUND FORECLOSES ON GRAND TRAVERSE RESORT

 TRAVERSE CITY, Mich., March 2 /PRNewswire/ -- Almost a year after starting foreclosure proceedings on the Grand Traverse Resort, the General Retirement System of the City of Detroit received the final go-ahead to foreclose on the luxury resort, considered one of the Midwest's premier vacation and conference centers.
 The Sixth Circuit Court of Appeals Monday denied a request by the resort's developer, Paul Nine, for an order stopping the foreclosure sale, which went off as scheduled at noon at the Grand Traverse County Courthouse.
 The resort owes $80 million to the Retirement System, which represents some 24,000 city employees.
 Michael S. Khoury, a partner in the law firm of Clark, Klein & Beaumont, which is acting as special bankruptcy counsel to the Detroit pension fund, said that the fund intends to bring in a proven, professional team to run the Grand Traverse Resort as a luxury-class operation.
 "We will provide the capital required to regain the status lost by the current management -- and to restore the prestige this current management has squandered," Khoury said.
 "We're glad to see an end to the series of delays that have characterized these bankruptcy and foreclosure proceedings," he said. "Last month, Judge Jo Ann Stevenson stated that every day that passes is detrimental to the creditors of the resort. 'Under the circumstances,' she said, 'the court has given the (resort) more than enough of a breathing spell, and has had its fill of questionable attempts at reorganization.'"
 "In fact," Khoury noted, "every day that passed before foreclosure could begin, every day that passed in continuing litigation, every day that passes before we can bring in proven, professional management -- every delay has meant that assets to repay the creditors have been further dissipated and restoring the resort to its premier position has become more difficult to achieve."
 Khoury said that the next step will be to work with all parties to achieve a smooth and rapid transition to new management, and to ensure that the resort remains open and viable.
 "This will require the cooperation of everyone -- which will hopefully be forthcoming," he said. "One of the first priorities of the new management will be to schedule meetings with employees, suppliers, condominium owners, sports club members, community leaders and the general public -- to discuss goals and plans for achieving them.
 "Our goals will be to turn Grand Traverse Resort into a financially stable contributor to the local and state economies," Khoury said, "into a resort Traverse City, Grand Traverse County, and the state of Michigan can all be proud of ... and into one of the country's finest resorts."
 -0- 3/2/93
 /NOTE: For photo of Mr. Khoury, please call Martha Rodger of Gabriel Werba & Associates, 313-259-4947, for Clark, Klein & Beaumont.
 CONTACT: Kurt J. Meister of Clark, Klein & Beaumont, 313-965-8268/


CO: Clark, Klein & Beaumont; Grand Traverse Resort ST: Michigan IN: LEI SU: BCY

DH -- DE029 -- 2005 03/02/93 13:43 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 2, 1993
Words:486
Previous Article:UNIT TRUSTS ISSUE $819.0 MILLION IN JANUARY
Next Article:BIG PRINTING PRESS GETS ROLLING IN DETROIT
Topics:


Related Articles
GRAND TRAVERSE RESORT REFILES CHAPTER 11 PETITION
GRAND TRAVERSE RESORT GRANTED STAY BY U.S. CIRCUIT COURT OF APPEALS
STATEMENT CONCERNING 6th CIRCUIT COURT OF APPEALS' DECISION STAYING FORECLOSURE OF GRAND TRAVERSE RESORT
DETROIT PENSION FUND GAINS CONTROL OF GRAND TRAVERSE RESORT
WINTHROP HOTELS & RESORTS TO OPERATE GRAND TRAVERSE RESORT
GRAND TRAVERSE RESORT ANNOUNCES REDUCTION OF GOLF RATES
GRAND TRAVERSE RESORT INTRODUCES COMPREHENSIVE SPA & GOLF PROGRAMS
KSL Recreation Purchases Grand Traverse Resort
Michigan.
Experience Grand Traverse Resort & Spa Anew.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters