Conneaut Lake Park heads to bankruptcy court today

Category: Bankruptcy Law Published: Thursday, 22 January 2015 Written by Admin

A status conference and an initial hearing on Trustees' bankruptcy is scheduled for 10 am before Judge Jeffrey Deller of Pittsburgh, the chief judge for US Bankruptcy Court of Western Pennsylvania. The hearing also will be sent via video conference to the Bankruptcy Courtroom, US Courthouse, 17 S. Park Row, Erie.

The hearing is scheduled to include potential action on the appointment of attorney George Snyder and Stonecipher Law Firm as the bankruptcy attorney for Trustees; payment to the park's utility providers during bankruptcy proceedings; and a motion to extend time to Jan. 30 for Trustees to file a list of the park's assets and liabilities, financial statement, equity security holders and related filings.

Under federal bankruptcy law, the bankruptcy filing automatically stopped any creditors from continuing any action against Trustees.

Conneaut Lake Park was set to go to a sheriff's sale Dec. 5, 2014, to pay more than $925,000 in overdue real estate taxes dating back to 1997 that are owed to Conneaut School District, Crawford County and the townships of Sadsbury and Summit.

On Sept. 10, 2014, Conneaut School District, Crawford County and Sadsbury and Summit townships filed a joint motion with Crawford County Court of Common Pleas for a sheriff's sale to force payment of $927,812.95 in property taxes, interest and penalties owed to them, plus $14,029 in attorneys' fees as well as costs associated with the sale to be added.

The park's federal bankruptcy filing gives Trustees protection from its creditors like the four taxing bodies, but the bankruptcy is subject to oversight of a bankruptcy judge.

Any bankruptcy reorganization plan must be approved by the bankruptcy court and the park's creditors also will have input on the plan.

Keith Gushard can be reached at 724-6370 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..

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