The Confirmation Hearing for Crescent’s Plan for Reorganization is scheduled for May 20. The plan has good news for club members.
Palm Coast, FL – May 13, 20 – Crescent Resources LLC is expected to emerge from Chapter 11 bankruptcy soon. Crescent and 130 of its subsidiaries declared bankruptcy June 10, 2009. Over the last decade, Crescent and its local subsidiaries, primarily Landmar Group LLC, constituted the second largest real estate development company in Palm Coast and Flagler County, FL. Of particular concern to local residents has been the uncertain fate of the four golf courses owned (in whole or in part) by Crescent – the three courses comprising The Grand Club (Cypress, Pines, and the closed Matanzas course) and Grand Haven Golf Club.
Eligible creditors’ opportunity to vote to accept the Reorganization Agreement ended May 10th. Crescent’s appointed information contact, The Garden City Group, Inc. failed to respond to repeated requests by GoToby.com to confirm the results of the vote. The confirmation hearing to accept the plan will be on May 20, 2010. If accepted, the effective date will follow shortly. The plan should give club members optimism.
Inspection of one of the bankruptcy documents, the 344-page Plan Supplement in Support of the Debtors’ Revised Second Amended Joint Plan of Reorganization should put some club members’ concerns to rest. A section headed "CONTRACT RELATED DOCUMENTS, Exhibit D: Schedule of Executory Contracts and Unexpired Leases to be Assumed Pursuant to Section 11.1 of the Planl. It’s list included the following items among contracts to be assumed :
Grand Haven Golf Club – Landmar Group LLC – Operating Agreement
Grand Haven Golf Club – Landmar Management LLC – Operating Agreement
The Grand Club – Landmar Group LLC – Operating Agreement
The Grand Club – Landmar Management LLC – Operating Agreement
Hampton Golf Inc. – Landmar Group LLC – Operating Agreement – Grand Haven Golf Club
Hampton Golf Inc. – Landmar Management LLC – Operating Agreement – Grand Haven Golf Club
Hampton Golf Inc. – Landmar Group LLC – Operating Agreement – The Grand Club
Hampton Golf Inc. – Landmar Management LLC – Operating Agreement – The Grand Club
Hampton Golf Inc., 20% – Landmar Management – Joint Venture Agreement – Grand Haven Golf Club
Hampton Golf Inc., 20% – Landmar Management – Joint Venture Agreement – The Grand Club
Further Clarification comes from another section in the same document – Exhibit F: Schedule of Customer Programs to be Assumed Pursuant to Section 11.10 of the Plan which states:
Schedule of Customer Programs to be Assumed Pursuant to Section 11.10 of the Plan
In the ordinary course of business and as is customary in the real estate development business, the Debtors instituted and engaged in certain activities to develop and sustain a positive reputation and relationship with their customers. To that end, the Debtors implemented various customer programs and policies designed to ensure customer satisfaction, drive sales, meet competitive pressures, develop and sustain customer relationships and loyalty, improve profitability, and generate goodwill for the Debtors and their products and services. Pursuant to
Section 11.10 of the Plan, the following is a list of the communities or projects at which the Debtors intend to (i) honor all of the rights (monetary or otherwise) of their customers arising under the various operating agreements, membership agreements, and transfer agreements (the “Customer Programs”) relating to such communities or projects, and (ii) perform all of the Debtors’ post-Effective Date obligations associated with such Customer Programs.
To the extent that any Customer Program is contained in or made part of an executory contract or unexpired lease, such agreement appears on the Schedule of Executory Contracts and Unexpired Leases to be Assumed Pursuant to Section 11.1 of the Plan.
Inclusion herein shall not expand or alter any rights or obligations under any of the Customer Programs, nor shall it create any rights or obligations that do not otherwise exist, if at all, under the terms of the Customer Programs. Likewise, inclusion herein shall not alter or otherwise modify the Debtors’ or Reorganized Debtors’ rights to modify the rights and obligations relating to the Customer Programs pre- or post-confirmation in accordance with the terms of such Customer Program.
The Schedule F list includes both Grand Haven Golf Club and The Grand Club.
One cannot be certain of what will happen until the new company emerges from bankruptcy, but local club members should be encouraged based on the contents of this document. Matanzas’ future remains murky. Clearly no golf course renovation can be expected there until the value of existing courses exceed the cost of renovating Matanzas.