A speed bump slowed sale of Empire Ranch Golf Course complex despite a bankruptcy court order, but a spokesperson for the complex said Tuesday it would proceed.
Sandra Millard, speaking on behalf of Dwight Millard, said a stipulation among attorneys for the golf course complex, one of the chief creditors, and Carson City was prepared that would put the sale date on or before Sept. 21 rather than the bankruptcy order of Sept. 4, which was last Friday. Millard, debtor in possession, would transfer it for $3.5 million to a group in Southern California identified as Carson Creek Resort, Inc.
“The closing date has been extended,” Sandra Millard said. She said early in the afternoon on her husband’s behalf a stipulation “will be filed” that postpones the date and that additional money will come from the buyers to satisfy the chief creditor, GSR Investments, LLC, a company of Garth Richards. Richards, who has Silver Oak Golf Course and Conference Center, through his firm is owed more than $1.2 million in the bankruptcy.
In fact, the court order from U.S. Bankruptcy Court for the District of Nevada calling to the sale last Friday listed the amount he would receive as $1,210,561.44 plus a per diem of $152.79 daily for each additional day after Friday, the court-ordered designated date for the closing. GSR held the first priority lien as the GSR Deed of Trust.
The court document listed more than $2 million as going to Patricia Thompson and Stanton Park Development, Inc. due to their second priority deed of trust. Thompson is due $594,220 and Stanton Park Development more than $1.4 million.
Other debts listed: $5,250 to Carson City government for utilities; $50,000 to Darby Law Practice, LTD, for a trust account handling legal fees and related costs for the case; $112,500 to Nina Loucks, trustee of the Loucks Family Decedents Trust; and remaining proceeds of under $80,000 to Christine Millard, trustee of the George W. Barger Family Trust, which had fifth priority among those listed.
According to the Millards, a glitch had slowed money from the buying group and “a substantial additional deposit” of $1.3 million would come by Friday to pave the way for closing on Sept. 21. The bankruptcy court had in its sale order last week said if escrow didn’t close as scheduled and lienholders weren’t paid as provided, that within one business day CCR (Carson Creek Resort) should make notification.
“In the vent the sale is not consummated and is terminated for any reason, the Debtor shall have until Sept. 18, 2015, to file a new motion to sell on any existing or new back-up offer or a plan or reorganization,” said the court document. The stipulation, however, according to the Millards will give time to avoid such a result.
Richards also was contacted by the Nevada Appeal and said he was aware of the situation and hoped the sale would close.
“It looks like it might,” he said. “I hope it works out.” He said his understanding was the closing has been set back to Sept. 18.
City government’s interest is more than just the back payment for utilities. The court’s sale order includes an effluent service agreement that should continue. Carson City would continue supplying treated wastewater effluent to the course complex, as it has for years, to keep effluent out of the Carson River as required by the federal government.
The complex consists of 27 golfing holes at 1875 Fair Way Dr., which involves 221 acres of land, along with related assets.