02-23-2005, 12:31 AM
While recently surfing the web I found a disturbing site a prominent fly fishing lodge in Katmai Alaska For sale in Bankruptcy court, I went to there site and called them the owner lied to us about it. I also noticed they are still actively advertising trips and taking deposits, All traveling fly fisherman should check out the site and make sure they do not get scammed and lose there hard earned deposits you can see the bankruptcy listing at www.auctionaz.com/021205katmai.htm :tsk_tsk:
02-23-2005, 03:43 PM
What's your connection to the lodge? Just wondering, since this is your 1st post here.
02-23-2005, 09:40 PM
FishNBUM, this was taken off the auction web site, "Last season while operating in CH 11 bankruptcy the lodge hosted 527 guests at an average stay of four days and an average expenditure per guest of $3,600.
This season is already half booked, in other words, 300 guests have pre-registered
Projections for the 2005 season are 600 guests at $5,000/guest = $3,000,000 in gross for the season
Season runs May 1 – October 31 "
It looks to me that it is still running even though it is in bankruptcy, and i am sure they will keep it running as i would think it is easer to sell a working lodge. just my thoughts,tight lines,brian :)
03-15-2005, 09:43 AM
I am somewhat familiar with this whole situation.
Wouldnt take anything on the auction site to be too reliable. after all a season starting on May 1 would result in some upset fishermen, since the river doesnt open until June 8th :eek: .Remember the auction site are trying to sell this thing.
As for the 300 pre registered guests...well Katmai Lodge has been collecting some deposits through another company, World Wide Angling LLC, that is outside of the bankruptcy filing. Currently, these deposits are not included in the auction, meaning whoever buys the lodge may not get them. This is potentially a very bad situation for those who have made deposits.
03-15-2005, 02:05 PM
You must also remember that Chapter 11 Bankruptcy in the US is for restucturing of debt and the debt repayment schedule in order to keep an individual or company solvent and in business while protecting it from those it owes money to from accelerating (meaning calling the whole loan ballance due early) the debt. This is very different from Chapter 9 Bankruptcy, which is not for restucturing debt or protection from debt accelaration. Rather Chapter 9 Bankruptcy is for liquidaion of certain assets and completely retiring the debt, regardless of what is left after those assets are sold and regardless of the amount of unpaid debt left.
In other words, Chapter 11 allows a business to get itself out of debt, repay its debts, and survive, while Chapter 9 closes the business and takes its assets. Lest folks think a Chapter 11 is a sham, no less an illuminary than Donald Trump has used Chapter 11 in order to restructure his Trump enterprises debt and remain in business. Interestingly, he was able to repay his creditors and is still in business.