Bankruptcy Update April: Surprise, No Water. | Frenchman Ranch

On April 6, the parties held a required status conference.  There were three things to note from this status conference:

First, in a surprise move at the end of the status conference, the judge, Judge August Landis, recused himself saying that the parties will be better off if the trial judge has no association with the parties.  He disclosed that he was previously a US Trustee (prior to being a judge) and that in that capacity, he had hired and worked with an attorney that now is affiliated with proposed Stoneridge Parkway’s counsel.  This case will therefore be reassigned to a different judge and the status conference and application for employment was continued for at least two weeks.

Second, Stoneridge Parkway has stated that two material circumstances have changed since the last bankruptcy – over half of the houses had changed hands and it has become clear that the water district will not allow the reopening of the golf course with irrigation by potable water (and the golf course irrigation is not set up for reclaimed water).

Third, Stoneridge Parkway also advised the court that Shun Lee (the Lender on the Golf Course) is claiming that the original $5m note now at about $29 million.