Judge converts Tamarack bankruptcy to chapter 11

Credit: KTVB

Judge converts Tamarack bankruptcy to chapter 11

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by Associated Press

KTVB.COM

Posted on April 9, 2010 at 10:53 AM

Updated Tuesday, Nov 12 at 7:54 PM

BOISE -- A federal bankruptcy judge has agreed to a request from Tamarack Resort to switch its involuntary bankruptcy case from chapter 7 to a chapter 11 proceeding.

The switch, approved by U.S. Bankruptcy Judge Terry Myers on Friday, means Tamarack will have a chance to try to reorganize its debt and ask creditors to change the terms of its loans rather than selling of all its assets to pay back creditors.

If Tamarack can't reorganize its debt and pay back the loans, the judge may switch the case back to a chapter 7 proceeding, directing a trustee to sell off Tamarack's assets and use the cash to pay back creditors.

Tamarack opened near Donnelly in 2004, but three years later its owners defaulted on a construction loan, prompting Credit Suisse to file for foreclosure in 2008. Last year, four creditors asked that Tamarack be placed under involuntary bankruptcy protection.

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