On November 17, 2015, the presiding bankruptcy court granted the request of The Club At Shenandoah Springs Village, Inc. to voluntarily dismiss its chapter 11 case, culminating a challenging chapter 11 case. With the assistance of SulmeyerKupetz, the Club successfully closed a sale of its sprawling retirement and golf community in Thousand Palms, California, populated by nearly 2,000 homeowners.
The sale was the subject of overbidding by three potential buyers, and the ultimate sales price of $18,025,000 enabled the Club to pay all secured and unsecured creditors in full, while insuring a significant return to equity holders. As a result, SulmeyerKupetz successfully argued that the Club should be permitted to exit from chapter 11 through a structured dismissal rather than through a plan of reorganization. During the chapter 11 case, SulmeyerKupetz was forced to overcome a motion for relief from stay filed by the debtor’s secured lender, and numerous objections to the sale process filed by the property’s homeowner’s association.