|The Wisconsin State
JournalMcClatchy-Tribune Regional News
July 1, 2008 --Northern Bay, the company that owns Northern Bay Golf Resort & Marina, filed Chapter 11 bankruptcy proceedings in U.S. District Court in Madison on Monday.
But the resort, on Castle Rock Lake in Adams County, about 30 minutes north of Wisconsin Dells, will stay open and continue to operate normally, the company said.
"The bankruptcy filing is strictly a corporate issue resulting from the general downturn in the real estate and mortgage markets. The condos and homes are just not selling at the rate we anticipated," Matthew Mootz, who designed the resort and is chief financial officer, said in a written statement.
The resort's guests, employees and vendors will not be affected, the company said, and normal operations will continue.
In April, AnchorBank filed foreclosure proceedings on the property saying Northern Bay owed the Madison bank more than $27 million. The case has not yet been resolved and is scheduled for a motions hearings in Adams County Circuit Court in August.
"We do not anticipate foreclosure and are very hopeful we will come to a resolution during the course of the Chapter 11 filing," Mootz's statement said.
AnchorBank is among 11 pages of creditors listed by Northern Bay in its bankruptcy filing. It is a secured creditor, which means it would have top priority for repayment under a bankruptcy reorganization.
Northern Bay's 20 top unsecured creditors include Park Bank, Madison, owed $1.2 million; Nonn's Flooring, Madison, $280,000; and Mid-State Supply, Wautoma, $217,000.
The $150 million resort development, near Arkdale, features an 18-hole golf course and is planned to include 312 vacation condominiums, 47 homes, a marina, indoor water park and conference center, when completed.
Neither Mootz nor attorneys for the company or AnchorBank were available for further comment.
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