The outfit that owns Branson resort Big Cedar Lodge is offering $2.3 million to purchase Gage’s Long Creek Marina on Table Rock Lake, and a bankruptcy judge could welcome other bidders to the table.
On Jan. 11, Big Cedar LLC signed a letter of intent to purchase Hollister-based Gage’s Long Creek Marina Inc. out of bankruptcy. With the offer, Big Cedar has been named a “stalking-horse bidder,” which means a federal bankruptcy court judge could approve a competitive bidding process during a Feb. 16 hearing.
Justin Gage, president of Gage’s Long Creek Marina, confirmed Big Cedar’s interest in buying the company’s assets, but he declined to answer further questions, saying he didn’t want to jeopardize the deal.
Gage’s Long Creek Marina filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Western District of Missouri on June 20, according to court records.
Jim Hagale, president of Big Cedar in Ridgedale and Springfield-based Bass Pro Shops, declined requests for an interview through Bass Pro spokesman Larry Whiteley.
According to
Investopedia.com, a stalking horse bid is: “An initial bid on a bankrupt company’s assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid.”
This method allows the filing company to avoid low bids on its assets, Investopedia explains. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the distressed company’s assets. In essence, the stalking horse sets the bar so that other bidders can’t undercut the purchase price.
According to the courts, the assets sought by Big Cedar are:
- Long Creek commercial dock and attached buildings;
- seven additional docks;
- a tour boat dock;
- a 1994 SkipperLiner, an 80x20 motor yacht;
- the existing furniture, fixtures, equipment and inventory;
- the lease between the Secretary of the Army and the Gage family dating back to 1998; and
- approximately 130 annual boat slip rental accounts.
The assets are subject to a Commerce Bank lien in the amount of $1.6 million and an Internal Revenue Service claim of roughly $3,000.
Protections are in place for Big Cedar should it fail to secure the purchase of Gage’s Long Creek’s assets. According to court records, Big Cedar is entitled to a breakup fee of $100,000 should it lose the competitive bidding process.
The agreement also includes provisions that would pay Carol Gage $78,000 per year for five years from the date of closing, and Justin and James Gage would each receive a consulting fee of $66,000 annually for five years.
The closing and approval schedule outlined in the motion to sell set a target closing date of March 31, and the court was asked to approve a sale by Feb. 27.
Without a sale, Gage’s Long Creek’s assets may be subject to a creditor’s liquidation.
“In debtor’s opinion, such a process would yield substantially less value to the debtor’s estate and its creditors because of the costs associated therewith,” the motion reads.
The motion also maintains that any bidder at an auction runs the risk of not being able to secure a lease with the Army Corps of Engineers, and Big Cedar already has agreements in place with the government.
According to court records, the failure of the Gage family to sell a 149-passenger commercial yacht known as the Branson American Star to a prospective buyer led to the company filing for Chapter 11 bankruptcy protection.
Records show that Gage’s Long Creek was neither successful in selling the yacht to Joplin-based Equity Resources for $750,000 nor in securing a loan in that amount from the company.
The bankruptcy filing lists undisputed creditors as Equity Resources LLC, $207,500; Komatsu Financial, $104,000; Greenberg Taurig LLP, $61,287; Peoples Bank, $7,016; and Atlas Security, $2,985. The company’s estimated assets and liabilities are both listed as greater than $1 million, and its largest disputed creditor is John Deere Credit, at $300,000.
The Gage family also owns the $6 million Gage Marina and Shoppes at Branson Landing, where it offers lake cruises and has at least one retail tenant in Denny’s Harley Davidson. That marina is not included in the purchase offer.
Big Cedar Lodge, which Bass Pro Shops founder Johnny Morris bought in 1987, is designed in the Bass Pro style on the banks of Table Rock Lake in Ridgedale, just 3.6 miles northeast of Gage’s Long Creek Marina. Morris also owns the nearby Dogwood Canyon Nature Park and Top of the Rock Golf Course, which has been closed for several years for renovations.[[In-content Ad]]
