Unfortunately a car accident (my own, not one I had to cover) derailed my day yesterday, so I was unable to check with Diablo Grande attorney Michael Ahrens about his plans for today's bankruptcy hearing. But I just checked for new court documents online — last time, the motion for continuance was filed the day before the hearing — and there wasn't anything of that sort.
There is, though, a supplemental pleading that was filed Monday responding to judge Robert S. Baldwil's concerns about the sale and the settlement. Baldwil said at last Tuesday's hearing that it would be in Diablo Grande's best interest if its officials did not try to convince him that everything should be approved as-is, but rather they should offer more disclosures about the settlement itself.
It doesn't appear they've taken his advice.
If the memorandum filed Monday is any indication, Ahrens intends to argue that the sale and settlement should be approved as-is, stating that the precedent Baldwil cited is not as valid as the precedent Diablo Grande is citing. That sounds dangerous to me. We'll see how Baldwil responds this morning.
On the matter of the sale itself — without which all of this settlement talk becomes moot — it appears that as of Monday, Diablo Grande was "in the final stages of discussions with certain bidders" and that "those discussions may result in further adjustments to the provisions of the" settlement. That also could be problematic. Was there enough time for the settlement to be adjusted and for all of those involved in the settlement to give their OK? If Baldwil was resistent to the first settlement, will he be any more likely to approve a lesser one?
My mostly uneducated guess — based on nothing but pure speculation — is that Diablo Grande will come forth with a buyer, and either a) the sale won't be approved by the judge, or b) the revised settlement will be contested by one or more creditors. Regardless, it seems unlikely
There should be plenty more drama than there was last week, though.
3 comments:
James,
Your analysis is what I have seen also. Behind the scenes, Ahrens has been strong arming the creditors saying that you either take this or the development will be in huge trouble. I wish I could be at the hearing
What is known about World International,LLC?
California Business Entity database shows a Nov. 2007 business registration in that name. A Delaware LLC, using a San Diego Registered agent.
World International Vacation Club has a website listing a board of directors, but a LLC would be unlikely to have a corporate arrangement.
Seems some bona fide of the bidder is in order-- the deal is suspicious otherwise.
X, you know about as much as I do about World International. I also found the World International Vacation Club site, but all indications are this is NOT the same company. I don't have official confirmation of that, but that's how it appears. I'm hopeful that once the sale is approved, it'll become a little easier to track down real information about the buyer. Everyone's pretty tight-lipped for now.
Post a Comment