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Recreational Industries to defend cash use

by Aviva Gat  |  Published December 20, 2011 at 2:10 PM
bankruptcy_227x128.jpgThe official committee of unsecured creditors of Recreational Industries Inc. hopes the court reconsiders allowing the resort operator to use cash collateral.

Judge Wendelin I. Lipp will consider the committee's request, but no hearing had been scheduled as of the morning of Tuesday, Dec. 20. Lipp did, however, on Tuesday deny the committee's request for an expedited hearing on the motion.

The committee on Dec. 14 asked the court to reconsider the final cash collateral order, asserting that the order did have "the unsecured creditors in mind" and the committee did not have any say in the cash collateral discussions.

Lipp had given Recreational Industries final approval to use the funds on Nov. 30. The committee was appointed on Nov. 17, and the committee argued it did not have a chance to partake in discussions.

Recreational Industries' Chapter 11 case is being jointly administered with those of D.C. Development LLC, Wisp Resort Development Inc. and Clubs at Wisp LLC. The debtors, which own and operate the Wisp Resort in northwestern Maryland, filed for Chapter 11 on Oct. 15.

Recreational Industries is the only debtor authorized to use cash collateral.
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Tags: bankruptcy | Chapter 11 | Recreational Industries Inc.

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Aviva Gat

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