Refinancing
will avert
sheriff's sale
of resort

The Valley of the Lakes housing and resort area will refinance a bank loan in time to avoid a sheriff's sale, a manager of the firm that owns and develops the area said on Tuesday.

Frank M. Cedrone, a managing general partner for CBG Limited, said his firm completed paperwork to let the refinancing proceed.

"CBG Limited has received a pledge of a bank loan guarantee in the form of a standby forward takeout comnitment," Cedronc said.

One local bank president said he didn't know what a standby forward takeout commitment is, and other bankers he asked were unfamiliar with the term.

To arrange the commitment, Cedrone said CBG limited went through a "long and tedious" time of preparing documents.

"If for any reason, preparation of paperwork causes delays, an irrevocable guarantee will be put in place to assure payment upon completion and execution of the required documents. This would also cause cancellation of any foreclosure proceedings," Cedrone said.

The foreclosure sale was scheduled for Sept. 3 by Luzerne County Sheriff Frank Jagodinski after CBG Limited agreed how much it must pay to satisfy its loan with First Eastern Bank.

Cedrone doesn't think the plans of PNC Bank Corp. to take over First Fastern will affect the repayment.

First Eastern loaned $14 million to CBG Limited, a First Eastern stockholder said in a legal complaint filed against the bank.

Attorney Joseph Solfanelli says in the complaint he filed that when CBG missed a payment, First Eastern borrowed $1.3 million to mask the default. The second lender filed for judgment against CBG in August 1991, the complaint says.

CBG filed for bankruptcy In March 1992.

Cedrone said his company plans to resume development and full-scale operations 30 days after emerging from Chapter 11 proceedings.

Operations include townhouses and a golf course under construction, a sewage treatment plant and a ski area that closed for the winter of 1992-93.