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This Article: Hazleton Standard-Speaker, June 6, 1992, at pg. 23

Valley of Lakes RICO Class Action against PNCBANK, et al.
ripped edge: exhibits

Valley of Lakes battles to recover from Chapter 11

Ray Saul
Saturday, June 6, 1992 --Page 23

Frank M. Cedrone, managing general partner of CBG Limited, more commonly known as Valley of Lakes and Eagle Rock Resort, has received an interim loan commitment of $3-1/2-million that he hopes will lead to the operation emerging from Chapter 11 bankruptcy.

Cedrone, who has devoted countless hours, as well as a considerable amount of his own funds, to making the operation a success, is cautiously optimistic that Valley of Lakes can weather the economic storm.

Currently, everything being done at Valley of Lakes is on a cash basis, which is a requirement under Chapter 11. Eagle Rock is open for lunch and dinner six days a week and for brunch Sunday, and both the main lodge and base lodge are available for private functions.

Five expensive homes are currently under construction at Valley of Lakes, others have recently been completed and plans for others are on the drawing board. Four to five homes are under construction each month at Valley of Lakes.

Valley of Lakes, and Eagle Rock, in summary, are operating daily.


Cedrone's goals are no different than they were before the current economic recession made it difficult to obtain needed financing to complete the project in which substantially more than $25 million has been invested.

Included in the goals is the completion of the first nine holes of the golf course on the site that will become an income-producing operation when it is complete, rather than an expense, as it now is, or will be, when construction is resumed.

Cedrone has traveled the world to seek seek adequate financing to complete the project, and he has had a number of offers. Most of them, however, were potential investors willIng to provide the financing, but they also wanted complete financial control.

With all of the time, ener&v and money he has invested in Valley of Lakes, Cedrone wasn't willing to relin ulsh control, an understandable decision.


"Virtually every unsecured creditor I have spoken with is rooting for us," Cedrone said. "We have given them a substantial amount of business over the years and they want us to continue as a viable operation."

The Schuylkill County Chamber of Commerce and various government units have expressed support for Valley of Lakes.

Among the reasons why the Chamber of Commerce and governmental units are interested in the future of Valley of Lakes are:

  • As many as 500 people, including construction workers, have been employed on the property at a given time.
  • Property owners of homes that are valued substantially higher than the average home in the Hazleton area pay taxes to two counties, four townships and two school districts.
  • The complex is a plus for industrial development organizations that advertise the advantages of the Hazleton area.
  • The complex is environmentally sound with its own sewage treatment plant, upgraded water supply and reforesting, all done without govemment grants.

Valley of Lakes Is a tremendous asset for the Greater Hazleton Area and Luzerne County. If CBG Limited can ride out the current financial crisis and Cedrone can achieve all, or most, of his goals, the entire community will benefit.

Having toured the complex a half-dozen times, I never fail to be impressed by its beauty and its potential.

I, for one, and I believe many others, would love to see the golf course, townhouses, lodge, apartment houses and hotel that are in the plans become a reality and the ski operation continually improved.

The success of Valley of Lakes and Eagle Rock would be another gigantic plus for the area, and it would be great if it can be done with Cedrone at the helm because he has poured his heart and soul into a gigantic challenge that has been derailed, hopefully temporarily, by situations over which he has had little or no control.


In a recent letter to the editor, a writer said members of the Hazleton Area School Board are paid a salary. School board members are not paid a salary and never have been in Hazleton or any of the surrounding areas.

Valley of Lakes RICO Class Action against PNCBANK, et al.

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