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August 21, 2004Debts catch Shanty CreekByRecord-Eagle staff writer BELLAIRE - Comerica Bank officials have initiated foreclosure proceedings against several Shanty Creek Resort properties, accusing the resort's owners of defaulting on a $20.35 million mortgage. A written statement from resort owners LaVanway Capital and Trade Corp. said the foreclosure "does not change operations or ownership of the resort." Among the affected properties are the Cedar River, Summit Village and Schuss Mountain golf courses, the Summit and Cedar River Village lodges, the Schuss restaurant and ski slopes, and numerous individual condominium units throughout the resort, off M-88 between Bellaire and Mancelona. Comerica's public notice of foreclosure states affected properties are set for sale to the highest bidder at public auction Sept. 24. A resort spokesman said Shanty Creek ownership is seeking to reorganize its debt through new lenders. "Refinancing is the next step," said David Nyquist, Shanty Creek marketing manager. The mortgage was entered into by resort owners Go Forward Limited Partnership and LaVanway Capital and Trade Corp. The group ownership includes former resort CEO Terry Schieber and oil and gas executive Thomas LaVanway of Charlevoix. Comerica spokesman Scott Talley confirmed the foreclosure but declined further elaboration. "We do not comment on relationships with our customers," he said. The two corporations facing foreclosure also have significant delinquent tax bills. Antrim County Treasurer Sherry Comben said Go Forward Operating Limited Partnership owes nearly $487,000 in back taxes, interest and penalties for 2002 and 2003. Hunting Investment Corp., the previous name for what is now LaVanway Capital and Trade Corp., owes over $139,000 for the same time period, Comben said. The bills do not include 2004 taxes or any delinquent taxes that individuals within the corporations may owe, Comben said. Resort management is "aggressively seeking" a new lead lender and new equity for capital improvements "to update facilities that have not been updated due to limited cash flow," the statement said. "A number of individuals and entities, some with significant and successful resort management experience, have committed to provide equity in conjunction with the refinancing," LaVanway's statement said. Shanty Creek is the largest employer in Antrim County, Nyquist said. He declined to provide the number of employees who work at the resort. Bellaire resident Ted Hammond said the health and stability of Shanty Creek is important to the community. "It's a large employer, and brings a lot of events and people to the area that bring business to the community," he said. Shanty Creek and Schuss Mountain resorts were separately created in the late 1960s, and merged into one resort in 1986 by Club Resorts Inc. The resort became a privately owned property with individual investors in 1997. Owners then embarked on a $60 million expansion creating the Cedar River Village, featuring a large, centerpiece lodge; an upscale restaurant and 85-unit hotel; a Tom Weiskopf-designed, 18-hole golf course; expanded ski slopes and surrounding homes and condominiums. But by March 2003, a "restructuring" and "refocusing" of the resort resulted in the firing of more than 150 employees, including a large number of managers and supervisors. Many were immediately re-hired under new job titles for less money, according to an employee working at the facility at the time. The-resort president and chief operating officer Jerry Pasternak said changes were an effort to shift the resort's focus from business-oriented conventions to more family-oriented activities.
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