Moonlight Basin Ranch files plan, agrees to transfer assets to lenders

By Caroline Salls

Pittsburgh, July 13 - Moonlight Basin Ranch LP filed its plan of reorganization and related disclosure statement on July 12 with the U.S. Bankruptcy Court for the District of Montana.

The company said the plan calls for the continued operation of the Moonlight Basin Resort and payments to unsecured creditors funded by Moonlight Basin's pre-bankruptcy lenders Lehman Brothers Holdings Inc. and Lehman Commercial Paper Inc.

According to the disclosure statement, the cornerstone of the plan is a settlement, the terms of which are being finalized, between the company, its insiders and the lenders. The settlement will resolve disputes related to pre-bankruptcy loans.

Moonlight Basin said its failure to repay more than $170 million in loans by the maturity dates led to a foreclosure proceeding in Montana State Court and, ultimately, the Chapter 11 filing.

Under the settlement, the Moonlight Basin debtors will transfer all of their assets to the lenders.

To facilitate the settlement, the lenders have agreed to provide the cash to fund more than $1 million in plan payments.

Creditors will be treated as follows:

• Holders of priority claims and convenience claims will be paid in full in cash;

• Holders of other secured claims will either be paid in full in cash, receive the collateral securing their claims or receive another treatment that leaves their rights unaltered;

• Holders of pre-bankruptcy lender-secured claims will be satisfied through the transfer of debtor-purchased assets;

• Holders of general unsecured claims will receive a share of cash from a general unsecured claims cash reserve; and

• Holders of equity interests will receive no distribution.

Moonlight Basin, an Ennis, Mont., resort, filed for bankruptcy on Nov. 18, 2009. Its Chapter 11 case number is 09-62327.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.