Case:12-24882-ABC Doc#:401 Filed:08/30/12

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UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF COLORADO In re Case No. 12-24882 ABC

CORDILLERA GOLF CLUB, LLC dba The Club Chapter 11 at Cordillera, Tax ID / EIN: 27-0331317
Debtor.

NOTICE PURSUANT TO FED.R.BANKR.P. 4001(c) AND 9014, AND L.B.R. 4001-3 AND 9013-1 OF MOTION TO: (1) APPROVE INSURANCE PREMIUM FINANCING PURSUANT TO

11 U.S.C. 364(c) AND (d); AND (2) CANCEL PRIOR INSURANCE COVERAGE EFFECTIVE AS OF AUGUST 26, 2012
OBJECTION DEADLINE: SEPTEMBER 13, 2012.

YOU ARE HEREBY NOTIFIED THAT Cordillera Golf Club, LLC dba The Club at Cordillera. (Debtor), the debtor and debtor-in-possession herein, has filed a Motion to: (1) Approve Insurance Premium Financing Pursuant to 11 U.S.C. 364 (c)(1) and (c)(2); and (2) Cancel Prior Insurance Coverage Effective as of August 26, 2012 (the Motion) with the bankruptcy court and requests the following relief. Prior to the Petition Date, the Debtor obtained commercial auto insurance, property insurance, general liability insurance and umbrella insurance policies (collectively, the Philadelphia Policies) for the period from June 26, 2012 through June 26, 2013 from Philadelphia Indemnity Insurance Company (Philadelphia). The Debtor has obtained insurance coverage from Zurich American Insurance Company of Illinois (Zurich) and St. Paul Fire & Marine Insurance Company (St. Paul) and has agreed that the Debtors existing insurance policies (collectively, the Philadelphia Policies) with Philadelphia Indemnity Insurance Company (Philadelphia) shall be cancelled effective as of August 26, 2012. The Debtor has fully paid Philadelphia for the period from June 26, 2012 through August 26, 2012 and is not required to pay any additional amounts to Philadelphia on account of the Philadelphia Policies. In addition, neither the Debtor nor other persons or entities are releasing or waiving any rights they had under the Philadelphia Policies as of August 26, 2012. The Debtor obtained replacement commercial auto insurance, property insurance, and general liability insurance policies from Zurich and an umbrella insurance policy from St. Paul

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(collectively, the Zurich/St. Paul Policies) for the period from August 26, 2012 through August 26, 2013. The total annual premium for the Zurich/St. Paul Policies is $145,060.00.1 AON Premium Finance, LLC (APF) has agreed to finance the payment of the unpaid premium balance pursuant to the terms of the financing agreement attached to the Motion as Exhibit 1 (the Agreement). The Agreement with APF, including any additional provisions requested in the proposed order to the Motion, provides, in pertinent, part as follows: (a) The Debtor shall make an initial down payment on the policies in the amount of $50,779.00; (b) APF shall pay the unpaid premium balance of $94,281.00; (c) interest on the financed premium shall accrue at the annual rate of 4.669%, for a total finance charge of $1,584.42; (d) the Debtor shall repay APF in seven (7) equal monthly installments of $13,695.06 beginning October 5, 2012; (e) the Debtor has agreed to grant APF a first position security interest in all sums payable to the Debtor, including among other things, any gross unearned premiums and any payment on account of loss which results in a reduction of unearned premium subject to any mortgagee or loss payee interest; (f) if the Debtor does not make any of the payments due under the Agreement as they become due, but subject to the Debtors right to cure any payment default within ten (10) days written notice of default from APF to the Debtor, the automatic stay shall automatically lift to enable APF and/or third parties, including insurance companies providing the coverage under the Zurich/St. Paul Policies, to take all steps necessary and appropriate to cancel the Zurich/St. Paul Policies, collect the collateral and apply such collateral to the indebtedness owed to APF by the Debtor, in exercising such rights, APF and/or third parties shall comply with the notice and other relevant provisions of the Agreement and applicable law; and (g) APF, or any third party, including insurance companies providing the coverage under the Policies, exercising such rights shall comply with the notice provisions and other provisions of the Agreement. The Debtor asserts the proposed financing is in the best interest of the estate and creditors. The Office of the United States Trustee requires the Debtor to maintain insurance during the pendency of the Chapter 11 proceeding. The Premium Financing will enable the Debtor to comply with these requirements and is consistent with the Alpine DIP and the Budget. Therefore, the Premium Financing should be approved. Copies of all pleadings filed in the Debtors case are available at the following website: www.omnimgt.com/cordilleragolfclub. Additional copies will be provided upon request. If you oppose the motion or object to the requested relief your objection and request for hearing must be filed on or before the objection deadline stated above, served on the movant at the address indicated below, and must state clearly all objections and any legal basis for the objections. The court will not consider general objections. In the absence of a timely,

Although the premium for the Philadelphia Policies was approximately $8,000 less per year, the Debtor believes the Zurich/St. Paul Policies are preferable to the Philadelphia Policies because: (1) Zurich and St. Paul are higher rated insurance companies; (2) the Zurich/St. Paul Policies are equivalent or favorable to the Philadelphia Policies; and (3) the Debtor was able to obtain the Premium Financing which is consistent with the DIP financing agreements with Alpine Bank (the Alpine DIP) and the related permitted budget (the Budget).

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substantiated objection and request for hearing by an interested party, the court may approve or grant the requested relief Dated: August 30, 2012 SENDER & WASSERMAN, P.C. /s/ David V. Wadsworth Harvey Sender, #7546 David V. Wadsworth, #32066 1660 Lincoln Street, Suite 2200 Denver, CO 80264 Telephone: 303-296-1999 Facsimile: 303-296-7600 Email: sender@sendwass.com; dvw@sendwass.com Counsel for Debtor and Debtor-in-Possession -andChristopher Celentino (CA No. 131688) Mikel Bistrow (CA No. 102978) Matthew Riopelle (CA No. 260176) Admitted Pro Hac Vice 402 West Broadway, Suite 2100 San Diego, California 92101 Telephone: 619-234-6655 Facsimile: 619-234-3510 Email: ccelentino@foley.com Email: mbistrow@foley.com Email: mriopelle@foley.com Counsel for Debtor and Debtorin-Possession

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