Moonlight Basin Ranch consents to examiner appointment via stipulation

By Caroline Salls

Pittsburgh, Aug. 2 - Moonlight Basin Ranch has consented to the appointment of an examiner for its Chapter 11 bankruptcy case, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Montana.

As previously reported, U.S. Trustee Robert D. Miller Jr. asked the court to appoint an examiner, citing insider Lee Poole's conflict of interest and "unwillingness to be perfectly candid and honest with the court, the debtors' creditors and other parties in interest."

Under the consent stipulation the company reached with the U.S. Trustee, the examiner's duties will be limited to evaluating litigation referenced in a sale and settlement agreement attached to Moonlight Basin's disclosure statement.

This investigation can include determining whether a provision for a $3.5 million settlement payment made to Lee Poole was proper, or whether these funds should have been allocated to the payment of the company's general unsecured creditors.

The examiner's duties will also include determining whether Moonlight Basin might have potential claims against any of its equity owners, management, professionals, agents or others.

According to the stipulation, Moonlight Basin will have the opportunity to review and comment on the examiner's report before it is filed with the court "to avoid any potential misunderstanding of facts by the examiner or to avoid any other inadvertent errors or omissions.

The examiner will not be bound by the company's comments.

The examiner's report must be filed with the court by Aug. 26.

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

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