Roaring River land to be sold at auction

November 26, 2008 10:30 pm

— It once consisted of 4,300 acres that was predicted to be the largest housing development ever along the rim of the New River Gorge.
As part of bankruptcy proceedings initiated in October by the company that owns it, that land will now be sold at auction.
Orlando, Fla.-based Land Resource LLC — the owner of the proposed 2,000-home Roaring River housing project — filed for Chapter 11 bankruptcy last month, citing a combination of the declining economy, the credit freeze and a challenging real estate market.
That came on the heels of Roaring River closing its Fayetteville office in July and laying off all of its employees. By that time, approximately 80 lots had been sold. Those will now be sold to the highest bidder through the bankruptcy process.
According to an Oct. 30 press release on the company’s Web site — www.landresource.com — Land Resource wants “to facilitate an orderly negotiations process with its creditors and facilitate a structured sale of the enterprise or its assets.”
“We deeply regret the impact the Chapter 11 filing will have on property owners, vendors and employees,” Land Resource chairman and CEO J. Robert Ward said last month. “We remain mindful of our customers whose home sites and communities have not yet been completed.”
Ward added the company will identify the best means of maximizing recoveries for all creditor constituencies through the Chapter 11 process. That includes customers and employees.
“As part of this process, we will explore the sale of all the company’s assets to a well capitalized and well positioned purchaser,” he said.
Ward noted the “sudden and steep” economic downturn and asserted that its impact on Land Resource was significant. “Home site sales have also declined dramatically due in large part to the extremely limited availability of credit. Many well qualified buyers are finding it difficult to secure financing for a second home.”
He noted that purchasers of Land Resource’s assets may elect to fulfill the developer’s obligations, including those related to funding homeowner associations. All transactions, Ward said, will be subject to bankruptcy court approval.
The company has vowed to keep lot owners and creditors apprised of the situation as it develops via its Web site. Land Resource has also set up a “Frequently Asked Questions” section on its Web site
Land Resource has retained Trustee Services Inc. as its noticing and claims agent. TSI will provide notice of the commencement of the cases to each creditor, including disclosures with respect to the procedures for filing proofs of claim with the court, the company explained.
Land Resource spokesman Will Hurst did not immediately return a telephone call Wednesday and could not be reached for comment.
The Associated Press and Register-Herald reporter
Fred Pace contributed to this story.
— E-mail: mhill@register-herald.com