Moonlight Basin Ranch voters OK reorganization plan; hearing Oct. 17

By Jim Witters

Wilmington, Del., Oct. 14 - Moonlight Basin Ranch LP's plan of reorganization was approved by creditors, according to the ballot report filed Friday with the U.S. Bankruptcy Court for the District of Montana.

A plan confirmation hearing is scheduled for Oct. 17.

The ballot results are:

• Class 3 creditor Lehman Commercial Paper Inc., representing $95.78 million, voted to accept;

• Class 4 creditors Formost Construction Co. and Lehman Commercial Paper, representing $95.9 million, voted to accept;

• Class 5 assignees of 21 creditors representing $67,400, voted to accept;

• Crown Eagle Realty, no amount listed, and Ray and Stacy Dietz, representing $37,666, voted to reject; and

• Two other creditors with no class indicated, representing about $9,200, voted to accept.

As previously reported, the company expects to emerge from bankruptcy about 45 days after the confirmation of the plan.

According to the filing, the company reached a settlement agreement among the debtors and the pre-petition lenders that calls for the continued operation of the debtors' businesses after the transfer of substantially all the debtors' assets to the lenders, Lehman Brothers Holdings Inc. and Lehman Commercial Paper Inc.

Moonlight Basin's principal indirect owner, Lee Poole, agreed to transfer to the lenders "certain assets," cooperate in the smooth transfer of control to the lenders and ensure that beverage licenses remain in good standing.

As part of the settlement, the lenders agreed to

• Establish a reserve in the amount of $154,040 to pay allowed administrative expenses and costs associated with the implementation of the plan. The lenders also will pay costs incurred prior to the effective date that have not been paid;

• Establish a reserve in the amount of $258,185 to satisfy, in full, allowed convenience claims;

• Establish a reserve in the amount of $297,110 for the benefit of allowed general unsecured claims;

• Pay all cure amounts in connection with the assumption of executory contracts or unexpired leases, which amounts are estimated as of the date of the disclosure statement to be $60,262;

• Pay secured claims, which are estimated to be $244,602; and

• Establish a reserve to pay allowed professional compensation and reimbursement awards by the bankruptcy court for compensation for services rendered or reimbursement of expenses incurred through and including the effective date.

The settlement also calls for a payment of $3.5 million to Lee Poole at closing, according to the filing.

Moonlight Basin, an Ennis, Mont.-based resort, filed for bankruptcy on Nov. 18, 2009. Its Chapter 11 case number is 09-62327.

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