As we have discussed in previous updates, Shun Lee, the Golf Course Lender, has asked the Bankruptcy Court for a relief from “stay.” A “stay” in bankruptcy means this: When a debtor files for bankruptcy, the law imposes an automatic stop to all legal proceedings and debt collection activities. When Stoneridge filed for bankruptcy, the law automatically stopped Shun Lee’s foreclosure proceedings. Shun Lee has asked the Court to allow it to proceed to foreclosure.
Stoneridge has opposed Shun Lee’s request to lift stay, in part, because Stoneridge says that the Golf Course still has equity. Stoneridge pointed to an offer it received from Tri Pointe Homes to purchase the Golf Course for $34,000,000. (Stoneridge hasn’t accepted the offer, and the Bankruptcy Court hasn’t approved the sale.) Stoneridge did, however, say that it is trying to solicit even higher bids.