Last week, I got a little bit of paperwork in the mail from Gary U. Scharff’s Portland-based law firm. Gary is OSB #883031.
Bankruptcy sure is expensive (see Gary’s rate sheet attached to the second document posted below). It must be worth it, he was able to get Kameron DeLashmutt and his resort out from under the debt amassed. The failure of Thornburg (and the many other undersold destination resorts which are facing similar dilemmas) was precipitated by the economic downturn. As demand for lavish desert resorts dried up, so did available investment money.
It certainly didn’t help Thornburg Resort Company, LLC when the self-styled environmentalist-types started suing to stop development. These folks started their legal battle at the height of the economic boom. You know, the boom that flowed money from the Federal Reserve like Niagara Falls. Money went everywhere, so people took advantage of the torrential downpour to start several developments like Thornburg throughout the Pacific Northwest. Despite the money that might have been available, legal maneuvers successfully stopped development at Thornburg up to the bankruptcy you see now.
Here is Thornburg Resort Company, LLC’s announcement:
- Notice of Chapter 11 Bankruptcy Case, Meeting of Creditors, and Deadlines
- AMENDED APPLICATION FOR EMPLOYMENT OF ATTORNEY UNDER 11 U.S.C. SECTION 327(a), RULE 2014 VERIFIED STATEMENT FOR PROPOSED PROFESSIONAL, SCHEDULE 21, SCHEDULE 22, and CERTIFICATE OF SERVICE (listing all the creditors)
