Newspaper article THE JOURNAL RECORD

Bid for Shangri-La Resort Ok'd by Bankruptcy Judge

Newspaper article THE JOURNAL RECORD

Bid for Shangri-La Resort Ok'd by Bankruptcy Judge

Article excerpt

The Grand Lake resort of Shangri La in northeastern Oklahoma will change owners Nov. 16 as the result of a $16.5 million bid by Bank IV of Wichita being approved by U.S. Bankruptcy Judge Mickey Wilson.

The judge approved the increased bid Thursday for the 650-acre Delaware County resort, which has been operating under Chapter 11 reorganization for the past year.

Bank IV will provide about $2 million cash and $14.5 million in credit to acquire the property, said attorney Mike Freeman, spokesman for Bankruptcy Trustee Ainslee Perrault.

This is the third bid and second-highest made on the property since it has been operated under the auspices of Perrault as bankruptcy trustee.

The first bid of $18.5 million was submitted earlier this year by two California investors, R.C.I. Inc. and Cascade Funding Inc., both of Los Angeles. Their hopes to acquire the property were dashed after they failed to come up with the needed financial backing.

The second bid was made in August by Bank IV of Wichita, Thursday's successful bidder. Back in August however, when the bank submitted a $13 million bid and made offers to pay off certain creditors, Wilson refused to accept it, because it did not provide funds to pay off some unsecured creditors.

Freeman is the new U.S. Bankruptcy Trustee based in Oklahoma City for the Western Judicial District of Oklahoma. He took a "leave day" to help complete the sale because of his previous involvement representing Perrault in Tulsa.

Judge Wilson heard testimony from one of the bank's officers, Monty Briley, who said the bank would keep the resort open and would hire a management team to work with the trustee's employees in preparation for the 1988 tourist and convention season, according to Freeman. …

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