Ford's Colony CCMA Home Page

CCMA Chapter 11 - Messages

CCMA Board Appeal For Contributions For Legal Costs

Proof Of Claim Form

2010 Director Nomination Form

2009 Survey Results Here

The Country Club Membership Association is an organization of all members belonging to a dues paying membership category of the Ford’s Colony Country Club, Inc. (FCCC). The FCCC has agreed that CCMA will represent all members in an advisory role in working toward attaining mutually beneficial goals for the members and the Club.

Role Of The CCMA

• Represent golf and social members, providing input with regards to the golf and social venues within the Club.

• Work to ensure that the needs and interests of the membership are considered and reflected in the decisions of the owners and management.

• Communicate with its members on all matters pertaining to their financial, social and golfing interests in the Club.

• Work cooperatively with Club management to protect the members’ financial interests in the operation and in the disposition of the Club and its facilities.

FCCC Bankruptcy Filing

Update July 28, 2010

On July 22 the United States Bankruptcy Court held hearings on the following matters:

(i) an objection by Prudential Industrial Properties, LLC to the Creditor's Committee's Application to Employ Counsel
(ii) a Request by Marsh Hawk and Ford's Colony Country Club to continue using funds to operate through October
(iii) a Request by the Debtor to extend the time it has to file a Plan of Reorganization.

Prudential's objection to the Creditor's Committee hiring counsel was limited to an argument that no funds upon which Prudential has a lien (known as "cash collateral") should be used to pay counsel fees. The Court noted Prudential's objection but approved the appointment of Mr. John McIntyre as Counsel to the Creditors Committee. Any ruling on fees to be paid to Mr. McIntyre will be deferred for subsequent review.

The next matter heard was a motion to use Prudential's cash collateral to continue operations. After reviewing the Debtor's cash plan for August through October, the cash plan was extended with the exception that the Court requires greater definition of projected capital improvements totaling roughly $45,000. The Debtor noted that it did not think Prudential has an interest in the majority of cash being generated from operations and so future motions of this nature may not be necessary.

Finally the Debtor was granted an extension to the end of September to file its Plan of Reorganization. Subsequent to the Court hearing, the Committee met in Mr. McIntyre's offices to discuss preparations for reviewing the Reorganization Plan as it becomes available. As we indicated before, the Creditor's Committee will actively participate in the formulation of the Plan to help insure that the rights of creditors are represented.

Update July 9, 2010

On June 30, 2010 the Debtor's Counsel filed an amended schedule with the United States Trustee that lists Creditors that have claims for member advances. Individuals concerned should have received a mailing regarding the amended schedule. A Proof of Claim form is not technically required if the claim is listed accurately, and is not listed as "disputed", "contingent" or "unliquidated". Nevertheless, filing a Proof of Claim form is a good idea. Any Creditor listed who desires to rely on the schedule has the responsibility for determining that the claim is listed accurately and that it continues to be accurately listed in the event that the Debtor' schedule is amended in the future. The filing deadline remains July 28, 2010.

On July 1, 2010 the Debtor's Counsel entered a motion requesting that the Debtors exclusive period for preparing a Chapter 11 Plan be extended until September 30, 2010 and the period for soliciting acceptance of the plan be extended to November 30, 2010. The filing cited several reasons for this motion, including complexity of the case and need for sufficient time to negotiate a plan, and asked the court to schedule a hearing on July 22 or soon thereafter to enter an order extending these periods. This type of request is typical in a Chapter 11 case.

The Creditors' Committee anticipates that the Debtor will begin to formulate a plan within the next 30 to 60 days, once it has obtained an appraisal of the golf course. The Committee will, of course, actively participate in the formation of the plan to help insure that the rights of creditors are fully represented.

Update June 23, 2010

The Creditor's Committee met on Friday, June 18 and elected Phil Radcliffe as Chairman. Thereafter, the Committee continued its review of the Club's financial information. Over the next few weeks, the Committee will continue to work with the Club in order to substantiate the past and current status of operations at the country club. The Committee expresses its thanks for the time and cooperation of those involved.

In addition, the Committee addressed the numerous questions which members have raised about filing proofs of claim. The Committee suggests that any person believing he or she has a claim should file a proof of claim form prior to the July 28 deadline. Filing is necessary to receive a distribution in the Chapter 11 case if you are owed any amounts from Ford's Colony.

If individuals wish to file a claim, go to: http://www.vaeb.uscourts.gov/scripts/formsqry.exe ,then click on Form #10 (Proof of Claim).

The form should be sent via Certified Mail to: Attention Clerk of the Court, U.S. Bankruptcy Courts, Eastern District of Virginia, 600 Granby Street, Room 400, Norfolk, Virginia 23510-1915.

A link to the form required is also found on the home page of the CCMA website: www.fc-ccma.org.

The case names and numbers needed for the form are: Ford's Colony Country Club, Inc. /Case number 10-50633-SCS and Marsh Hawk Golf Club, LLC /Case number 10-50632-SCS.

Also, Jay Legum, in the Trustee's Office, is a good resource if you have any questions about filing. His phone number is (757) 441-6012 and his e-mail address is Jay.W.Legum@usdoj.gov.

Update June 15, 2010

I know most of you are aware of the untimely death of Jim Neidhart last week. Jim was Chairman of the Creditors Committee and provided us with his 35 years of experience and expertise dealing with bankruptcy issues. Our thoughts and prayers continue to go out to Jim's family.

The Creditors Committee needs to press forward with its responsibilities even with this tragic loss. The Committee members selected Phil Radcliffe as new Chairman and we will meet again this week to further plan our next steps, including reviewing debtor financial information and consulting in the formulation of the reorganization plan.

Filings should continue to be minimal over the next few weeks. The next court hearing is on the continued use of cash collateral by the Club, scheduled for July 22. The debtor reorganization plan is due August 1.

The deadline for filing is July 28, 2010. A link to the form required is found on the home page of the CCMA website: www.fc-ccma.org . The case names and numbers needed for the form are: Ford's Colony Country Club, Inc. /Case number 10-50633-SCS and Marsh Hawk Golf Club, LLC /Case number 10-50632-SCS. Also, Jay Legum, in the Trustee's Office, is a good resource if you have any questions about filing. His phone number is (757) 441-6012 and his e-mail address is Jay.W.Legum@usdoj.gov.

Member and resident support continues to be critical to the future of the Club. Again, our overall objective is a well managed, financially viable Club, with three courses, that provides quality service to membership and continues to be an important asset that adds value to the Ford's Colony Community.

Update June 1, 2010

The Creditor's Committee has approved employing John McIntyre, of Wilson & McIntyre PLLC, from Norfolk as counsel to represent the Unsecured Creditor's Committee. An important next step for the Committee is to arrange a meeting with the Debtors, their counsel and the Committee Counsel.

The filings in the Marsh Hawk Golf Club and Fords Colony Golf Club have been minimal over the past 2 weeks. The Debtor has filed information concerning its financial report for the month of April that shows the Club was modestly profitable for the month.

As we have said before, we cannot represent claims of individual members. If individuals believe they need legal advice, they should consult with an attorney to protect their interests. However, if individuals do wish to file a claim form, Mr. McIntyre provided information on the filing process when he spoke to us two weeks ago.

The steps are as follows: Go to website http://www.vaeb.uscourts.gov/scripts/formsqry.exe, then click on Form #10 (Proof of Claim).

If you wish to file, the form should be sent via Certified Mail to: Attention Clerk of the Court, U.S. Bankruptcy Courts, Eastern District of Virginia, 600 Granby Street, Room 400, Norfolk, Virginia 23510-1915.

As we have said before, protecting member benefits is a primary concern. Also, member support continues to be critical to the future of the Club. Our overall objective is a well managed, financially viable club, with three courses, that provides quality service to membership and continues to be an important asset that adds value to the Fords Colony Community. We will continue to keep you informed on the progress.

Update May 17, 2010

On Thursday, May 13, approximately 75 FCCC members met with John McIntrye, a bankruptcy attorney. He provided background on Chapter 11 filing and information on the claim filing process and answered questions about status of individual members. Based on feedback from participants, the meeting went well.

A Final Order permitting MHG (the club) to use cash collateral to continue to operate was entered by the Court on May 3, 2010. It permits MHG to make disbursements in accordance with a Budget attached to the Final Order. MHG is not to exceed the disbursements by more than 5%. The Final Order permits MHG and the Lender to agree to increases in the disbursements without having to have court approval. The Final Order automatically terminates on July 31, 2010 unless:

A hearing is set for July 22, 2010 at 11:00 a.m. on the continued use of cash collateral.

The Creditors’ Committee has approved the employment of counsel to represent the Unsecured Creditors’ Committee.

Update May 11,2010

To help individual members with possible claims (e.g. Membership Advances), the CCMA has arranged for John McIntyre, an experienced bankruptcy attorney, to be at the Swim & Tennis Club on Thursday, May 13 at 10 AM to discuss, in general, your status and possible options. We apologize for the short notice, but wanted to have this meeting at Mr. McIntyre’s first availability.

His firm is willing to represent individual members or groups of members who decide to secure their own legal counsel.

Our attorney advises us that the CCMA By-Laws require the CCMA to represent the rights and privileges of all members. We cannot represent claims of individual members. If any members believe they need legal advice, they should consult with an attorney to protect their interests.

The United States Trustees Office has formed a creditors’ committee in the Marsh Hawk Golf Club, LLC and Ford’s Colony Country Club, Inc. Chapter 11 filings and we can now confirm that the CCMA will have formal representation on the committee. The committee members are: Jim Neidhart, Sam Bowlin, Tom Hughes, Phil Radcliffe and Don Baker. All of the members are homeowners and are present or resigned FCCC members. The creditors’ committee is empowered to do the following pursuant to the United State Bankruptcy Code:

The creditors’ committee is meeting next week to interview attorneys to act as counsel to the creditors’ committee.

To restate what we have said before; protecting your member benefits is our primary objective. All concerned continue to express the importance of maintaining the club facilities and golf courses, and the importance of members to the future of the club.

Update May 1, 2010

As stated in our last update, this past Thursday was the Creditors Meeting which was held at the U. S. Trustee’s Office in Newport News. The purpose of the meeting was a review of the schedules and exhibits submitted by the Debtor. The Trustee started the session with his own list of questions and once he was finished, he opened the floor for all present to ask direct questions of the Debtor.

. Main Attendees were: U.S. Trustee, Club management, Club’s Attorney, CCMA, FCHOA, several ex club members, and Acushnet (via phone)

. The U. S. Trustee asked several questions regarding the corporate history of the company, ownership, insider and affiliate debts, number of employees, salary ranges, overview of membership and background on member Advanced Payments.

. CCMA requested representation on the Creditors Committee
. 90 day extension to Cash Plan approved by Court (this allows the Club to continue to operate and use its cash to pay bills). On July 22, 2010 the club will go back to court and seek approval for another extension. This procedure of the Debtor seeking and the Court approving the continued use of cash is normal in Chapter 11.

. The Financial extension plan continues to assume no changes in member dues and no changes in our member benefits.

. Club management acknowledged the importance of the membership and stated that, in order to keep the membership intact, the club must be maintained in excellent condition.

.Club Management is also preparing to secure an updated appraisal on the property (three golf courses, driving range, club house, parking lots)

. Early this year a fair number of our members prepaid their annual dues, trail fees and walking fees. Prepaid Member dues are recognized as a liability on the financial schedules submitted by the club. When these payments were made by the members the full amount was recognized as a liability and each month one twelfth of the total is recognized as Revenue. The Prepaid Trail Fees and Walking Fees were all taken into Revenue in January. Club management stated that they remain very confident that the club will continue to operate and, therefore, will be able to honor these 2010 prepayments.

. Confirmation that expenses related to the Chapter 11 proceeding (Court costs, filing fees, Attorney fees and other Professional fees) will be paid out of the club’s revenue. While this news may come as an unpleasant surprise to some of our members, this is standard practice and these are necessary expenditures within Chapter 11.

. We inquired about what recourse the membership has in case our member benefits, service levels at the club, or golf course conditions begin to deteriorate. The U.S. Trustee advised us to confer with our Attorney on this issue. We will be reviewing this issue with the CCMA’s attorney and will keep the membership updated.

. Advanced Payments – all ex members of FCCC have or will be contacted by Debtor’s Attorney with information on how to file a claim, deadline is apparently July 28, 2010. All seem to concur the overall dollar value of the Advanced Payments is +$4 million. (See paragraph below on upcoming meeting)

. Per FCCC attorney discussions with Prudential are ongoing, cooperative, with expectation of a successful outcome later this year. This is a positive sign which we will monitor very closely.
. The club is working on a reorganization plan which they hope to finish within 60 – 90 days.
. Next Status meeting (business review) with Trustee set for July 22, 2010. CCMA plans to be in attendance.

. On Friday we learned that a formal Creditors Committee will be established and the CCMA is awaiting confirmation that we will have representation on this committee.

On a separate note, the CCMA, in conjunction with our attorney (Susan Tarley), has communicated with John McIntyre. John is an experienced bankruptcy attorney who is willing to come and meet with all the members who have made “Advanced Payments” (Bondholders) to discuss, in general, the claims of individual members. In addition, he will answer any questions members have about this subject and his firm is willing to represent individual members or groups of members who decide to secure legal counsel. We are hoping to schedule this meeting within the next two weeks.

Lastly rest assured that the CCMA is doing everything it can to stay on top of this very difficult situation and will provide the membership with all the salient information as soon as possible. The Chapter 11 process, by nature, generates a huge amount of data and while we all would like to know all the background, nothing is more important to us than preserving our member benefits and our member experience at Ford’s Colony.

If there are questions that you would like to ask please use the link at the CCMA website and we will respond to you as soon as possible.

April 28, 2010
CCMA Attorney’s Status Letter

Ford’s Colony Country Club, Inc. (“FCCC”) and Marsh Hawk Golf Club, LLC (“MHG”) each filed petitions under Chapter 11 of the United Bankruptcy Code on April 1, 2010 in the United States Bankruptcy Court for the Eastern District of Virginia, Newport News Division. The filings assert that Marsh Hawk Golf Club, LLC is wholly owned by Marsh Hawk Holding, LLC, and that Marsh Hawk Holding, LLC is wholly owned by Ford’s Colony Country Club, Inc.

FCCC and MHG filed a joint motion to use cash collateral. The lender, Prudential Industrial Properties, LLC (“Prudential”) has a lien on all assets of MHG, including, any cash receipts of MHG. Therefore, MHG is required to have approval to use the cash to continue operating the business. A preliminary hearing was held on April 5, 2010 resulting in an agreed upon order permitting the use of cash collateral on an interim basis and subject to certain terms and conditions. MHG is permitted to use the cash collateral for approved expenditures and may not exceed the total of the approved expenditures by more than 5%. MHG is required to submit weekly reports. The interim order is in place until the earlier of (i) the final hearing which is set for April 28, 2010 at 11:00 a.m. in Norfolk at 600 Granby Street, 4t h Floor, Courtroom 1, Norfolk, VA; (ii) conversion to a Chapter 7 or dismissal; (iii) appointment of a trustee; or (iv) on the motion of a party in interest if MHG fails to comply with the order. The interim order recites the current amount claimed by Prudential as $17,050,564.00 of principal as of 4/2/10 plus
accrued and unpaid pre-petition interest of $619,463.34, plus fees, other lawful costs and charges and a yield maintenance claim of approximately $4,602,475.27.

The debtors filed their Statement of Financial Affairs and Schedules which provide information on debts, assets, outstanding contracts and recent financial activities. These documents were filed on April 22, 2010. We have not had the opportunity to review these documents in detail and will update you once we have done so.

The debtors meeting of creditors (or Section 341 meeting) is scheduled for April 29, 2010 at 1:30 p.m. It will be held at the Office the United States Trustee at Peninsula Business Center II, 11751 Rock Landing Drive, Suite H1, Newport News, VA The meeting of creditors is a meeting where the United States Trustee makes certain inquiries of the debtors. Creditors also are given the opportunity to ask the debtor questions about their debts, assets and intentions. The meeting is open.

We have talked to the Attorney Advisor in the Office of the U.S. Trustee.
Presently, there had not been any discussion about a creditors committee. This does not mean that there will not be a creditors committee. It may be considered. Once the final hearing on the cash collateral is heard this issue should be evaluated.

Update April 28, 2010

At our request, Tarley Robinson, PLC is monitoring the recent Chapter 11 filings of Ford’s Colony Country Club and Marsh Hawk Golf Club for the CCMA and alerting us to the issues and events that could have an impact on our members.

Presently there are two pending hearings. The first is a final hearing set for April 28, 2010 at 11:00 a.m. at the United States Bankruptcy Court in Norfolk, VA on the debtors’ request to use cash collateral so they may continue to operate the club and golf course. The second is a meeting of creditors, which is scheduled for April 29, 2010 at 1:30 p.m. at the Office of the United States Trustee in Newport News, VA. Frank McMorrow and I will be attending the creditors meeting.

The debtors filed their Statement of Financial Affairs and Schedules on April 22, 2010. These documents provide information concerning the debtors’ debts, assets, recent financial activity and contractual obligations. The attorney has not had opportunity to review these documents.

Separately, recognizing that the FCCC was experiencing financial difficulties, the CCMA began a contingency planning effort in February to take a leadership role on behalf of the members. As a first step, we prepared a Briefing Book containing a number of documents that showed:
The revenue importance of the members (estimated to be about 67% of FCCC annual revenue)
The key member benefits
The key competitors in the Williamsburg area and the FCCC competitive advantages
The 2009 Survey to show areas of potential FCCC revenue upside
The Social and Golf Associations calendars to show the vitality of the FCCC
This document has already been useful in helping to make our case for membership on the Creditors Committee. An abbreviated version will be made available to the membership shortly.

In a Chapter 11 case, the debtor has an exclusive period of 120 days to file its Chapter 11 Plan. This time period may be extended. As we said before, and will say many times in the future, Chapter 11 cases usually move along slowly.

We will continue to communicate with you on the status of the case as events and issues emerge. In the mean-time, we urge you to continue to support the FCCC.

Update April 16, 2010

Since Ford’s Colony Country Club filed for Chapter 11 on April 2, the CCMA Board has met three times to discuss the implications of the Chapter 11 filing and the role CCMA should play to best represent members interests. Over the past 2 weeks, we have:

Talked with resident members with experience in this subject area who have offered to help
Identified a number of issues of interest to members on which we need legal advice before we can proceed

Begun formulation of a communication plan to keep members informed of developments, within the legal constraints of this process

On April 14, we had our initial consultation with our legal counsel (Susan Tarley) on CCMA's rights, responsibilities and options. Based on her advice, our next steps are:

It’s important to bear in mind that Chapter 11 is a complex and involved procedure which could last a long time. We find ourselves at the very early stages of this process and our primary concern is to see that the club continues to operate and continues to provide our members with the level of service that our membership deserves. As stated above, we will also continue to pursue and explore all legal options open to us and seek membership representation in the legal proceedings. We believe that by focusing on these two objectives our ability to protect our member benefits will be maximized.

Update April 6, 2010

Since the CCMA Board became aware of the FCCC filing for Chapter 11 Reorganization last Friday, April 2, we have met with Club management. Management assured us that all benefits will be maintained and we offered our cooperation and support for a successful outcome.

It is important to understand we are very early in this process and have much to learn.

We will keep you informed as the process evolves and will continue to represent your best interests.

FCCC Bankruptcy Filing