04/09/08
Sam Williams
News Editor
At least one Dyer Mountain Associates manager put a positive spin on the company's filing for Chapter 11 protection in a federal bankruptcy court Thursday, March 27.
The Chapter 11 process allows DMA to propose to the court a reorganization plan to satisfy its debts. The court must approve this plan before it can be implemented.
Sara Duryea, one of three DMA managers, said the bankruptcy filing gives the company "time to get a deal done. Within 30 days we should have a pretty good idea of whom we're going to be working with. We've got 90 to 120 days to present a plan to the court."
According to Duryea, DMA has "two investors working with us right now, and we're talking with other interested investors. Dyer Mountain is an incredible asset, and there's lots of interest."
Duryea said she is very optimistic despite all the current debt in the housing market. She acknowledged the project "needs equity," but she said she was "very confident" DMA would partner with other investors during the Chapter 11 process who would eventually build the project.
She also said the bankruptcy filing would give the company some time to resolve its conflicts with lenders who have been seeking to foreclose on the property.
Earlier this month, California Mortgage Reality, DMA's mortgage lender, planned several public auctions so the remaining unpaid balance on a deed of trust executed Nov. 18, 2005, could be paid. DMA reportedly owes almost $16 million. CMR extended the deadline at each of those public auctions, held on the steps of the Lassen County Courthouse.
Calls to CMR requesting comment for this story on the DMA bankruptcy filing were not returned.
The Dyer Mountain project has been in the works at least since voters approved a ballot initiative in 2000, which zoned the area around Dyer Mountain and Walker Lake, also known as Mountain Meadows Reservoir, as a mountain resort.
The Lassen County Board of Supervisors approved the environmental impact report, development agreement and tentative parcel map for the resort in September 2007.
A month later, three groups filed suit to stop the resort development, claiming Lassen County did not comply with California environmental law in approving DMA's plans to build, or have other developers build, three golf courses, ski runs, more than 4,000 houses and condos, and commercial and retail projects.
Mountain Meadows Conservancy, Sierra Watch and the Chico-based Yahi Group of the Sierra Club filed the lawsuit in Lassen County Superior Court asking the court to set aside certification of the environmental impact report, development agreement and parcel map.
Attorneys on both sides are collecting material for the "administrative record" in the lawsuit, and trial dates have not been set yet.
Sam Williams
News Editor
At least one Dyer Mountain Associates manager put a positive spin on the company's filing for Chapter 11 protection in a federal bankruptcy court Thursday, March 27.
The Chapter 11 process allows DMA to propose to the court a reorganization plan to satisfy its debts. The court must approve this plan before it can be implemented.
Sara Duryea, one of three DMA managers, said the bankruptcy filing gives the company "time to get a deal done. Within 30 days we should have a pretty good idea of whom we're going to be working with. We've got 90 to 120 days to present a plan to the court."
According to Duryea, DMA has "two investors working with us right now, and we're talking with other interested investors. Dyer Mountain is an incredible asset, and there's lots of interest."
Duryea said she is very optimistic despite all the current debt in the housing market. She acknowledged the project "needs equity," but she said she was "very confident" DMA would partner with other investors during the Chapter 11 process who would eventually build the project.
She also said the bankruptcy filing would give the company some time to resolve its conflicts with lenders who have been seeking to foreclose on the property.
Earlier this month, California Mortgage Reality, DMA's mortgage lender, planned several public auctions so the remaining unpaid balance on a deed of trust executed Nov. 18, 2005, could be paid. DMA reportedly owes almost $16 million. CMR extended the deadline at each of those public auctions, held on the steps of the Lassen County Courthouse.
Calls to CMR requesting comment for this story on the DMA bankruptcy filing were not returned.
The Dyer Mountain project has been in the works at least since voters approved a ballot initiative in 2000, which zoned the area around Dyer Mountain and Walker Lake, also known as Mountain Meadows Reservoir, as a mountain resort.
The Lassen County Board of Supervisors approved the environmental impact report, development agreement and tentative parcel map for the resort in September 2007.
A month later, three groups filed suit to stop the resort development, claiming Lassen County did not comply with California environmental law in approving DMA's plans to build, or have other developers build, three golf courses, ski runs, more than 4,000 houses and condos, and commercial and retail projects.
Mountain Meadows Conservancy, Sierra Watch and the Chico-based Yahi Group of the Sierra Club filed the lawsuit in Lassen County Superior Court asking the court to set aside certification of the environmental impact report, development agreement and parcel map.
Attorneys on both sides are collecting material for the "administrative record" in the lawsuit, and trial dates have not been set yet.
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