CBG Limited files Chapter 11

By CLAIRE SCHECHIRER
Times Leader Business Editor

WTLKES-BARRE - CBG Limited, a land and resort developer whose properties include Valley of Lakes residential development and Eagle Rock Ski Resort in Hazle Tovmship, filed Monday for Chapter 11 bankruptcy protection from creditors.

In a press release, CBG said it will try to reorganize and refinance. Bankruptcy laws provide at least 180 days for Chapter 11 reorganizations, during which time creditors are prohibited from suing for debt repayments.

Frank Hoegen, a Wilkes-Barre lawyer representing CBG, said the company will temporarily lay off some of its 50-person staff but will continue all operations.

The company faces debts of more than $15 million. Its largest creditor is First Eastern Bank of Wilkes-Barre. according to Hoegen.

The company was forced to seek bankruptcy protection Monday, Hoegen said, when a creditor, whom he would not identify, "leaned heavily on them."

Electric power, supplied by Pennsylvania Power and Light Co. (PP&L), was shut off briefly Monday in Valley of Lakes' main lodge, offices and guard buildings, according to Hoegen and a spokesman for Valley of Lakes property owners.

Power was on, however, by late afternoon. said Bob Behling, a PP&L spokesman. He refused to confirm an electricity shutdown earlier in the day.

CBG has "a couple of commitments" from lenders for financing during its reorganization attempt, Hoegen said. He would not disclose the potential lenders.

Additional Chapter 11 filings will be made later this week for CBG-afflliated companies, including Eagle Rock Ski Resort and the company's land development divisions, Hoegen said.

Frank Cedrone, CBG's controlling partner, could not be reached for comment.