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Judge gives Tamarack chance to reorganize debt

Rebecca Boone | Hagadone News Network | UPDATED 14 years, 11 months AGO
by Rebecca Boone
| April 11, 2010 9:00 PM

BOISE - A federal bankruptcy judge agreed Friday to give Tamarack Resort a chance to reorganize its debt and ask creditors to change the terms of its loans rather than selling of all its assets to pay back creditors. U.S. Bankruptcy Judge Terry Myers granted Tamarack's request to switch its involuntary bankruptcy case from Chapter 7 to a Chapter 11 proceeding.

BOISE - A federal bankruptcy judge agreed Friday to give Tamarack Resort a chance to reorganize its debt and ask creditors to change the terms of its loans rather than selling of all its assets to pay back creditors.

U.S. Bankruptcy Judge Terry Myers granted Tamarack's request to switch its involuntary bankruptcy case from Chapter 7 to a Chapter 11 proceeding.

If Tamarack can't reorganize its debt and pay back the loans, the judge may switch the case back to a Chapter 7 proceeding, directing a trustee to sell off Tamarack's assets and use the cash to pay back creditors.

Tamarack opened near Donnelly in 2004, but three years later its owners defaulted on a construction loan, prompting Credit Suisse to file for foreclosure in 2008. The foreclosure case is still under way in state court.

Late last year, four creditors asked that Tamarack be placed under involuntary bankruptcy protection, and the judge granted that request last month.

Tamarack co-owner and chief operating officer Jean-Pierre Boespflug said he plans to ask the bankruptcy court for permission to take on a new, super-priority loan to cover the cost of maintaining the resort over the next several months as well as the cost of marketing the business to potential buyers. Super-priority status would mean the new loan would be paid back before the creditors already waiting in line for cash.

Boespflug said the details would be outlined in a reorganization plan that will be filed with the court. He said the amount of any loan would be decided by the judge, and would not say how much he intended to ask for.

It's not yet clear if the Osprey Meadows golf course at Tamarack will open for play this summer.

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