|
Tallus owner files for Chapter 11 reorganization |
|
|
Friday, 26 October 2007 |
LOS ANGELES – Tallus L.P., owner of Tallus Private Residence Club, filed for Chapter 11 reorganization under the U.S. Bankruptcy Code on Monday, Oct. 15.
In a Chapter 11 filing, a company continues to operate its business, while reorganizing its debts under the supervision of the bankruptcy court. It also provides the opportunity to secure new financing to ensure success of the project.
Tallus owner Eric Fishburn said the filing will enable the company to raise needed money to complete the first stage of the two-stage project in Mammoth Lakes. “This step gives us breathing room and new momentum, which will allow us to realize the tremendous potential of this project. We expect to secure funding within a short time which will get construction moving again toward completion.”
In the project's first phase, four of nine homes, the clubhouse and gate house are completed. Current owners have been using Tallus since it opened last year before the holidays. Fishburn said the Chapter 11 filing will make it easier to continue selling properties, citing that potential buyers can have confidence that the project will be completed in a timely manner, that their deposits are secure and that current operations will continue with the extensive program of services and amenities.
“Reorganization is our best alternative to secure the help we need.” Fishburn said. “Tallus Private Residence Club will be the premier resort destination in the Mammoth Lakes area, but everyone knows what the California real estate market is going through right now.”
Although the project was on budget for construction, it was behind in meeting its sales targets, which resulted in the need to reorganize and secure funding to keep operations going through a longer sales cycle.
Reorganizing not only benefits the project, but also the existing homeowners as well as Mammoth Lakes, which is in the middle of a transformation with many major projects in various stages of development.
“The people of Mammoth Lakes, the Mountain Company and town officials have been extremely supportive of the project” he said. “We look forward to completing Tallus and joining Ritz Carlton, Starwood, Westin and the other projects which will be the future of Mammoth.” -Press Release
|
|
Last Updated ( Saturday, 03 November 2007 )
|
