Moonlight Basin Ranch disclosure statement hearing on hold; amended statement to be filed

By Lisa Kerner

Charlotte, N.C., July 28 - Moonlight Basin Ranch LP's hearing to approve its disclosure statement was continued to Sept 7 from Thursday, according to an attorney familiar with the case.

An amended disclosure statement must be filed by Aug. 12.

As previously reported, Moonlight Basin filed its plan of reorganization and related disclosure statement on July 12 with the U.S. Bankruptcy Court for the District of Montana.

The plan called 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.

A settlement between the company, its insiders and the lenders was to be the cornerstone of the plan.

However, the Moonlight Basin Trustee Robert D. Miller Jr. recommended last week that the judge deny approval of the joint debtors' disclosure statement, $3.5 million payout to president and chief executive officer Lee Poole.

On Thursday, Miller requested an examiner be appointed in the case.

Under the proposed plan, 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.

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