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

DATE:	  December 13, 1993

TO,       All Property Owners

FROM:	  Frank M. Cedrone

SUBJECT:  Current Status Report

First Eastern Bank made a decision to stay all proceedings 
against the property owned by C.B.G. Limited, for "its own 
business reasons".

However, this stay of proceedings is beneficial to C.B.G. 
Limited, as well as all property owners and creditors.  We 
will now have the time required to complete the refinancing 
that is already In progress.

We are currently in possession of a proposal and commitment 
for equity financing of the entire property that is 
acceptable to us.  C.B.G. Limited, its legal counsel, Hoegen 
& Marsh, and the Investment Services Group that produced the 
Lender/Investor, will now move rapidly to consummate this 

While we had hoped to have the refinancing completed by this 
time, the actions of a small group of special interests, 
acting willfully and maliciously, constantly interfered with 
and attempted disruption of our refinancing activity.  They 
were unsuccessful In these attempts and will now be dealt 
with legally and forcefully.

The Valley will now emerge from Chapter 11, wholly intact 
and will continue its progress to fulfill the overall Master 

We will shortly schedule a meeting of all property owners at 
the Valley, to present our entire development plan, 
including immediate steps, followed by short term, 
intermediate and long term plans:

We will also address our plans to come to the aid of 
property owners requiring our assistance, for any of a 
variety of reasons.

December 13, 1993
All Property owners
Page 2

Our plans include a complete development of the entire 
property under one banner, one ownership.

Our plans Include a redress of any and all real grievances 
suffered by any of our property owners during these past 
difficult times.

Our plans include payment to all Unsecured Creditors 100 
cents on the dollar.

To assist us in making all of our plans come to fruition 
with a minimum of inconvenience, I sincerely urge all 
property owners to pay their recently billed Maintenance 
Fees now.  I also urge those property owners who have been 
and are now delinquent in the payment of Maintenance, Water 
and Sewer Fees to make every possible attempt to become 

The only thing that can cause disruption of our plans is a 
lack of operating capital required to maintain security, 
maintenance and utilities operations, while awaiting 
completion of our refinancing.  In the past, C.B.G. heavily 
subsidized these operations out of cash flow from lot 
sales and other operations.  With lot sales and other 
operations closed @own until refinancing is completed, these 
operations must continue on their own income.

Please cooperate by sending in your payments now.

Thank you for your continued support.


Frank M. Cedrone
Managing General Partner

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

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