FIRST EASTERN BANK TO ASSIST VALLEY OF LAKES First Eastern Bank and C.B.G. Limited, owner of the Valley of Lakes and Eagle Rock Resort, entered into an Agreement which was approved by Judge John J. Thomas in Federal Bankruptcy Court on Thursday. Under the terms of the Agreement, C.B.G. Limited will continue to operate and maintain the community with operations, income and expenditures being monitored by a management group selected by First Eastern Bank. C.B.G. has already contracted with the management group, MLA Associates, Inc. to help operate and maintain the development. The cooperating agreement stipulates that First Eastern Bank will aid in meeting shortfalls in operating expenses, within certain guidelines. This assistance will allow C.B.G. to continue its efforts to re-finance its operations through one or more of a variety of..sources currently involved in negotiations with C.B.G. These sources include lenders, investors and joint venture prospects. Frank M. Cedrone, Managing General Partner of C.B.G. stated, "The Agreement is significant for three very important reasons. First, it allows for continued operation, maintenance and security of the development without inconveniences being experienced by our property owners. Second, it gives C.B.G. the breathing time necessary to complete a properly executed full funding of its operations leading to an emergence from its Chapter 11 status. Third, First Eastern Bank, recognizing the enormous impact a successful Valley of Lakes and Eagle Rock Resort has had in the past and can have in the future, once again, demonstrates its commitment to the people and economy of this region, as its leading independent bank". Another secured lender, J.L. Wolgin, also consented to the Agreement which gives C.B.G. a maximum time limit of seven months to complete its new financing. C.B.G. Limited is represented by Peter J. Hoegen, Jr., Esq.
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