Valley of Lakes
A sheriff's sale of Valley Of Lakes and Eagle Rock
resorts was postponed Friday at the Luzerne County Courthouse and rescheduled
for 10:30 a.m. Dec. 10.
The delay apparently came about because of a new assurance
of refinancing by CBG Ltd., owner of the two resorts.
What were described Friday as "intense negotiations
between CBG and its funding source" led to an agreement in which CBG
believes it can pay off its debt to the plaintiff in the case First Eastern
A news release from attorney Peter J. Hoegen Jr. indicated
that First Eastern will cooperate with CBG by providing the time to get
First Eastern officials, though weren't talking about
"We're not going to comment," Karen Shonk,
First Eastern's public relations officer, said from the bank's headquarters
in Wilkes-Barre when asked why the resorts were pulled from the public
Myles R. Wren, of Scranton, attorney for the plaintiff,
First Eastern Bank, did riot return a telephone call to his office.
The sale had been listed by Sheriff Frank Jagodinski
in a lawsuit filed by First Eastern against CBG.
The sale had been scheduled to satisfy CBG Ltd.'s debt
to the bank, which had loaned the developer a reported $14 million.
The housing and recreation development, about eight
miles southwest of Hazleton, spans 4,004 acres in Black Creek and Hazle
townships in Luzerne County and East Union and North Union townships in
Last month, Frank M. Cedrone, a managing general partner
in CBG Ltd., said the firm expected to refinance the First Eastern loan
in time to avoid a sheriff's sale of the property.
Cedrone also could not be reached Friday.
In the release from Hoegen, Cedrone is quoted saying
he is, pleased with the agreement with First Eastern and will be in a better
position to advise creditors and property owners of the status of the reorganizations
within the next 10 days.
Hoegen also said a "full-scale resumption of development"
in the resorts will start.
CBG Ltd. and six affiliates have been in Chapter 11
bankruptcy since March 1992. A hearing is scheduled, for Oct. 5 in U.S.
Bankruptcy Court on a trustee's motion to convert the bankruptcy to Chapter
7, which does not afford protection from creditors.
In another, action at the sheriff's sale, attorney
Miles Wren, representing attorney Michelle Thoman and the Hazleton National
Bank, offered a bid of taxes and costs in the amount of $31,907.88 for
the Econo Lodge, Route 93, Sugarloaf Township.
The bank I had taken action against Copper Mountain
A second Econo Lodge in Butler Township was scheduled
for a lawsuit brought by the same bank. This sale was removed from the
auction on Friday at the courthouse in Wilkes-Barre.
A large number of listed properties for sale were removed.
Auctions are scheduled again for Oct. 22 and Dec 10.