David Schroeder, a Springfield attorney representing Gage’s Long Creek Marina in bankruptcy court, said a federal judge has tentatively approved the sale of the Ridgedale marina’s assets and welcomed additional bidders to the table.
On Jan. 11, Big Cedar LLC, the entity that operates Big Cedar Lodge and is owned by Bass Pro Shops, signed a letter of intent to offer a “stalking-horse bid” and purchase the assets of Hollister-based Gage’s Long Creek Marina Inc. on Table Rock Lake for $2.3 million. The process seals Big Cedar’s bid as the minimum offer in the event of a competitive auction.
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. A stalking-horse bid is the first bid on a bankrupt company’s assets from a buyer chosen by the bankrupt company, according to
Investopedia.com.
On Feb. 16, federal Judge Jerry Venters approved an escrow agreement, and he tentatively approved the debtor’s plan to sell its assets. The plan becomes final after two amendments Venters made to the sale petition are formally agreed to by representatives of Gage’s Long Creek Marina, Big Cedar and Commerce Bank, the holder of a $1.6 million lien on the property.
According to court records, Big Cedar originally was entitled to a breakup fee of $100,000 should it lose the competitive bidding process. Venters modified that amount to $92,000, Schroeder said. In addition, during a competitive auction of Gage’s assets, it had been proposed that bidding would increase in $300,000 increments, but the judge lowered that amount to $100,000, Schroeder added.
“There are some minor changes and an order will be submitted incorporating those changes, but basically, the plan has been approved,” Schroeder said.
Schroeder said 5 p.m. March 12 is the deadline for qualified bidders to express their interest in competing against Big Cedar for the right to purchase the marina’s assets, which include a 1994 80-by-20 motor yacht, a commercial dock and attached buildings, seven additional docks and roughly 130 boat slip rental accounts. Each bidder is required to put down a $100,000 refundable deposit, have preapproved financing and show financial wherewithal to be able to close the sale, Schroeder said.
A final hearing and auction would follow on March 15, according to Schroeder. Should no other parties step forward to compete for the assets, the judge would be expected to approve Big Cedar’s original bid.
“There were some limited inquiries in the last three to four months by third parties to see if the assets would possibly be available for sale, and it is the debtor’s intention to give direct notice to those parties so they are aware of the process,” Schroeder said.
Big Cedar Lodge, which was purchased by Bass Pro Shops founder Johnny Morris in 1987, is located on the banks of Table Rock Lake in Ridgedale, just 3.6 miles northeast of Gage’s Long Creek Marina.
Larry Whiteley, a spokesman for Bass Pro Shops, said Big Cedar Lodge officials declined to comment. Justin Gage, president of Gage’s Long Creek, did not return Springfield Business Journal’s calls for comment.
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.
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 June 20.
The bankruptcy filing lists undisputed creditors including Equity Resources LLC, $207,500; Komatsu Financial, $104,000; Greenberg Taurig LLP, $61,287; Peoples Bank, $7,016; and Atlas Security, $2,985. The estimated assets and liabilities of Gage’s Long Creek Marina 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, which is not included in the purchase offer.[[In-content Ad]]