Thursday marked the emergence of Promontory from the voluntary bankruptcy they filed just shy of a year ago. During that time Promontory as well as a group of significant investors, including Credit Suisse, worked with the bankruptcy court to set up a plan for Promontory and its creditors to move forward.
Under Thursday’s plan, Credit Suisse is left in a lead role representing the first lien holders. CS also has a few responsibilities going forward. The coming week will allow them to raise the capital necessary for exit financing. If the money is raised, then CS will be able to take possession of the property at closing on March 23. If CS is not able to raise the funds, then Promontory could potentially be sold at auction.
But considering the restructuring plan garnered 100% approval, CS is fully expected to gather the money necessary move forward with the takeover. This would leave the creditors in a great position to leverage the remaining lot and cabin sales and continue with what has the potential to be a fantastic development.
More details will be forthcoming in the next week, and I’ll post updates as they come along.
