by Cordillera folks in their own words…
Below passed on to the ECT folks this past week – it’s from Cordillera property owners to other CPO’s giving them the current update on the ongoing litigation…See item 8 below with their objection to the media coverage in the Fishwrap.
Everyone, this is a snapshot of current (fast moving) developments:
1. Judge Gannett to Recuse Himself in Class Action Lawsuit. As previously reported, Judge Gannett on his own initiative informed the parties that David Wilhelm had raised a question about a comment regarding a bankrupt golf club made by Judge Gannett during a recent golf game. Judge Gannett made clear that he was not referring to Cordillera and had done nothing improper, and no one has suggested otherwise. Nonetheless, Mr. Wilhelm’s lawyers made a filing opposing Judge Gannett’s continued participation in the case. See attached. The class’s lawyers argued that Mr. Wilhelm’s filing is a spurious ploy to delay, but judges must avoid even suggestions of bias, so Judge Gannett has indicated that he will recuse himself. We expect the case to be reassigned very soon and a new calendar put in place.
2. Class files Motion In Bankruptcy Court for Appointment of Independent Trustee and Removal of David Wilhelm as Debtor in Possession. As we argued in connection with our motion asking the court to reject Mr. Wilhelm’s hand-picked restructuring officer (CRO), the Class argues in its Trustee motion that Mr. Wilhelm is not suited to remain in possession of the Club because he has abused, committed fraud against and alienated the class members (his customers). The Class further argues that, despite his public relations campaign, no Club can be successfully reconstituted if Mr. Wilhelm is part of it. (Click Here).
3. Mr. Wilhelm responds to CRO Oppositions and the Class and Unsecured Creditors Committee (“UCC”) Reply. Both the Class and the UCC have filed to oppose the hiring of a CRO. After receipt of these oppositions to the appointment of his CRO, Mr. Wilhelm filed an amendment that attempted to cast the CRO in a more independent light, which amendment was opposed as wholly inadequate by the Class and the UCC (both supplemental oppositions are attached).
4. Class Joins Motions of UCC to Reject Appointment of Foley & Lardner as Club’s counsel, to reject Price Waterhouse as auditor/accountants, and to reject Mr. Wilhelm’s proposed realty firm. The UCC has opposed the Club’s motion to hire Foley & Lardner as its counsel on the basis that that law firm has an inherent conflict of interest with Mr. Wilhelm, and the Class has joined this motion. The US Trustee has also evidenced his concern with this law firm’s conflicts. The UCC also filed in opposition to the hiring of both Price Waterhouse Coopers and the Keen realty firm as duplication and unnecessary, and the Class agrees.
5. As previously reported, the Delaware Bankruptcy Court Granted the Class’s and CMD/CPOA’s Transfer Motions, And Transferred Cordillera Bankruptcy Proceedings to Colorado Bankruptcy Court. Mr. Wilhelm vigorously fought transfer to the Colorado Bankruptcy court and blitzed the class and other interested parties with papers and testimony to keep the case in Delaware. He was unsuccessful, and bankruptcy proceedings are now underway in Colorado.
6. UCC to meet with Debtor and Alpine Bank re the Debtor’s Plan to Reorganize. It is standard in Bankruptcy for the Debtor to propose a plan and, normally, the Debtor has the exclusive right to do so for 120 days. We understand the UCC will be meeting with the Debtor and Alpine to discuss their respective positions and concerns.
7. Members of the class have had discussions with community groups seeking to evaluate a common position to take in bankruptcy with respect to the disposition/acquisition of Club assets in the event the Debtor’s plan is not approved by the Bankruptcy Court. We are evaluating options and approaches and will report more at a later date.
8. Public Relations. Many of you may have read some Club press releases in the Vail Daily or in your emails about the Club’s financing and restructuring successes. We understand that the Club has hired a public relations firm and we note that it is putting an optimistic spin on its press releases. For example, a Vail Daily article this week is entitled “Cordillera Golf Club gets financing.” The article FAILS to explain that the financing provides operating cash only through August 31 and is intended, in large part, to pay for the upkeep and maintenance of the golf courses and to prevent deterioration of the assets. The Class did not oppose this interim financing.
Visit the Cordillera website if you wish to read all (public record) materials submitted in the bankruptcy proceeding. That website can be visited by (Clicking Here)