The future of Tamarack Resort is uncertain after a federal judge dismissed the company's Chapter 11 bankruptcy case, sending it back to state court where foreclosure proceedings may eventually proceed to a sheriff's sale. Tamarack, which had an offer of $40 million to buy the company in Chapter 11 bankruptcy, is now uncertain if it will survive after the bankruptcy dismissal.
Tamarack majority owner J.P. Boespflug lamented the decision.
He says keeping the case in Chapter 11 protection offers the clearest and easiest path for disposing Tamarack's assets as a whole while paying at least some money to creditors, including a lender consortium led by Credit Suisse Group that is owed more than $350 million combined.
"We were so close - the judge knows that we are so close," Boespflug said, adding he may ask the judge to reconsider. "It's illogical from the interest of all creditors. The judge, quite frankly, is creating a mess."
Boespflug is certainly right about one thing, Chapter 11 bankruptcy is often the easiest path for troubled companies to liquidate assets, repay creditors and get a second chance to breathe life into a dying business. The bankruptcy dismissal will now pave the way for asset seizures to take place which could leave many, if not most creditors with no ability to recoup their losses.
But some of the creditors in the Tamarack Chapter 11 bankruptcy are glad that the bankruptcy judge made the decision to dismiss the case. Tamarack was accused of incompetency and the inability to manage its own financial affairs. The inability of manage its own affairs would make Chapter 11 bankruptcy inappropriate for the company. Chapter 11 bankruptcy is specifically designed for companies or individuals who have ability to manage their own finances while they repay creditors through the bankruptcy process.