menu bar

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

DATE:		May 7, 1993

TO:		All Property owners

FROM:		Frank M. Cedrone

SUBJECT:	Current Status Report

1.  Re-financing and Reorganization

C.B.G. Limited has secured the pledge of a Loan Guarantee from a foreign 
bank, in the form of a Standby Forward Takeout Commitment.

Simply put, this Guarantee assures that a new Lender or, other money source, 
will have a AAA (rated by Standard & Poors) Guarantee against any loss of 
principal and interest.

The enabling documents are in the process of being reviewed by attorneys for 
the, bank who is to issue the Guarantee, the various prospective funding 
sources, the transfer bank and subsequently, attorneys for C.R.C,. Limited.

Once they are approved and distributed to all parties concerned, C.B.G. will 
enter into contract, he issued a Letter of Commitment and meet with 
attorneys and executives of First Eastern Bank.

Cooperation is required of both secured and unsecured creditors.  Timing is 
very critical, yet we are optimistic that given the required cooperation, 
C.B.G. will emerge fully intact from Chapter 11.

2.  Reorganization and Resumption of Development and Full Scale Operations

Within the first 30 days after emergence from the Chapter 11 proceedings, 
C.B.G. plans to commence the following activities:

	a.  Resumption of utility line installations.

	b.  Repairs to all existing roads, followed by full scale road work as 
	    utility lines are completed.

	c.  Clearing of all trees, brush and debris from the entire lakebed of 
	    the new Lake Algonquin area (already permitted under our Soil,
	    Sedimentation and Erosion Control Permit) followed by commencement 
	    of the dam construction once that final permit is issued.

May 7, 1993
Property Owners
Page 2

	d.  Improvements to amenities servicing Lakes Susquehanna and Choctaw, 
	    as well as the Fireside Swim & Tennis Clubhouse, the Sports Core 
	    amenities and Holiday Park.

3.  Special Promotions and Marketing

Special Promotional Events are planned to commence within 60 days
after Reorganization and a full scale return to marketing, including all 
major media advertising will commence within 90 days.  This time schedule 
will allow for completion of all new required registrations.

4.  Property Owner Assistance

During the past and current economic crisis, C.B.G. was not the only 
casualty.  A number of our property owners suffered business reverses, loss 
of position and income, etc.  Still others have experienced a necessity to 
relocate to different areas of the country.  C.B.G. Limited intends to 
present proposals to all such property owners that are intended to give them 
assistance, relief and preservation of equity.  These proposals have been 
discussed with our Loan Guarantor and will receive their full support.

5.  Property Owner Support of C.B.G.'s Efforts

While the overwhelming majority of property owners have expressed strong 
support for C.B.G. both in writing and via personal visits or telephone 
calls, there still exists a small handful of highly active detractors.  Their 
actions have contributed to rumors, malicious mischief, acts of vandalism 
and even outright criminal conduct.  It is extremely important that you make 
an intelligent evaluation of where your best interests lie.  Are they best 
served by C.B.G. Limited in a unified overall comprehensive development of 
this property and your lifestyle?  Or would your interests be better served 
by a bank takeover, auction type sales of fragmented parcels of the property 
to separate individuals and/or companies, while the remainder would be left 
to a disorganized groun of individual property owners to finance, manage and 

This happened once before.  Property values declined 90%.  Maintenance and 
security virtually disappeared.  Years of decline and decay destroyed the 
quality of life and owners abandoned their properties.  Ask those who went 
through that experience.

C.B.G. Limited alone reversed all that and built the beautiful lifestyle 
that most of you love and enjoy.  C.B.G. Limited, with your support, promises 
to bring even greater benefits to all concerned.  We need your support.


Frank M. Cedrone
Managing General Partner

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

Home | Court Decisions | News Articles | RICO Complaint | Exhibits